[Federal Register Volume 73, Number 250 (Tuesday, December 30, 2008)]
[Proposed Rules]
[Pages 79734-79760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-28386]


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POSTAL SERVICE

39 CFR Parts 233, 261, 262, 263, 264, 265, and 266


Freedom of Information Act

AGENCY: Postal Service\TM\.

ACTION: Proposed rule.

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SUMMARY: The Postal Service proposes to amend its regulations relating 
to records and information management. The proposed revisions contain, 
in part, new provisions to comply with Executive Order (EO) 13,392, 
entitled ``Improving Agency Disclosure of Information.''

DATES: Comments must be received by January 29, 2009.

ADDRESS: Comments may be mailed or delivered to the Manager, Records 
Office, U. S. Postal Service, 475 L'Enfant Plaza, SW., Room 5821, 
Washington, DC 20260. Copies of all written comments will be available 
at this address for public inspection and photocopying between 8 a.m. 
and 4 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Jane Eyre, Manager, Records Office, 
202-268-2608.

SUPPLEMENTARY INFORMATION: The Postal Service is proposing to remove 
Sec.  233.3 (h)(4) from Title 39 Code of Federal Regulations. The 
current regulation provides an 8-year retention period for files and 
records pertaining to mail covers. The Postal Service proposes to 
remove Sec.  233.3(h)(4) because the retention periods for files and 
records are already in the records retention schedule for the Postal 
Service. Furthermore, USPS System of Records 700.100--Mail Cover 
Program Records, contains procedures for record storage, retrieval, 
safeguards, and disposal of mail cover records and information.

Records and Information Management (Parts 261-264)

    The Postal Service proposes to revise parts 261-264 concerning 
Postal Service records and information management for administrative 
purposes, to clarify existing text, and to update and add definitions.

Release of Information (Part 265)

    The Postal Service proposes to revise part 265, release of 
information, for administrative purposes, to clarify existing text, and 
to comply with provisions of EO 13,392. The EO requires, in part, that 
the Postal Service name a chief Freedom of Information Act officer, 
establish one or more requester service center(s), and name public 
liaisons. The Postal Service also made changes to update computer 
search fees incurred in processing records requests. We amended the 
computer search fees to reflect changes in the actual direct cost of 
retrieval, including computer search time and personnel costs. Computer 
search fees are subject to periodic revision, and have not been updated 
since September 2003. The new computer search fees are based on current 
industry standards and Postal Service salary schedules.

Privacy Information (Part 266)

    The Postal Service proposes to revise part 266, privacy of 
information, for administrative purposes, to clarify existing text, and 
to update definitions.

List of Subjects

39 CFR Part 233

    Administrative practice and procedure, Banks, Banking, Credit, 
Crime, Infants and children, Law enforcement, Penalties, Privacy, 
Seizures and forfeitures.

39 CFR Part 261

    Archives and records.

39 CFR Parts 262 and 263

    Archives and records.

39 CFR Part 264

    Archives and records, Security measures.

39 CFR Part 265

    Administrative practice and procedure, Courts, Freedom of 
information, Government employees.

39 CFR Part 266

    Privacy.

    For the reasons stated in the preamble, the Postal Service proposes 
to amend 39 CFR chapter I as follows:

PART 233--INSPECTION SERVICE AUTHORITY

    1. The authority citation for part 233 continues to read:

    Authority: 39 U.S.C. 101, 102, 202, 204, 401, 402, 403, 404, 
406, 410, 411, 1003, 3005(e)(1); 12 U.S.C. 3401-3422; 18 U.S.C. 981, 
1956, 1957, 2254, 3061; 21 U.S.C. 881; Omnibus Budget Reconciliation 
Act of 1996, sec. 662 (Pub. L. No. 104-208).

[[Page 79735]]

Sec.  233.3  [Amended]

    2. In Sec.  233.3, remove paragraph (h)(4).

PART 261--RECORDS AND INFORMATION MANAGEMENT

    3. Revise part 261 to read as follows:

PART 261--RECORDS AND INFORMATION MANAGEMENT

Sec.
261.1 Purpose and scope.
261.2 Authority.
261.3 Policy.
261.4 Responsibility.

    Authority: 39 U.S.C. 401.


Sec.  261.1  Purpose and scope.

    In accordance with 39 U.S.C. 410, the Postal Service is not subject 
to the provisions of the Federal Records Act of 1950, or any of its 
supporting regulations that provide for the conduct of records 
management in Federal agencies. The objective of parts 261 through 268 
is to provide the basis for a Postal Service-wide records and 
information management program affecting all organizational components 
having the custody of any form of information and records.


Sec.  261.2  Authority.

    (a) 39 U.S.C. 401(5) states that the Postal Service has the power 
to acquire property it deems necessary or convenient in the transaction 
of its business and to hold, maintain, sell, lease, or otherwise 
dispose of such property.
    (b) 39 CFR 262.2 assigns to the Postal Service Records Office, 
located under the Privacy Office, responsibility for the retention, 
security, and privacy of Postal Service records and the power to 
authorize the disclosure of such records and to order their disposal by 
destruction or transfer. Included is the authority to issue records 
management policy and to delegate or take appropriate action if that 
policy is not adhered to or if questions of interpretation of procedure 
arise.


Sec.  261.3  Policy.

    It is the policy of the Postal Service:
    (a) To, as appropriate, create, preserve, protect and disclose 
records which contain adequate and proper documentation of the 
organization, functions, policies, decisions, operations, procedures, 
activities, and transactions of the Postal Service.
    (b) To reduce to an absolute minimum the records holdings of the 
Postal Service by strict adherence to established records retention 
schedules.


Sec.  261.4  Responsibility.

    (a) The Chief Freedom of Information Act (FOIA) Officer. The Vice 
President and Consumer Advocate is designated as the Chief FOIA Officer 
and is responsible for the following:
    (1) Overseeing Postal Service compliance with the FOIA.
    (2) Making recommendations to the Postmaster General regarding the 
Postal Service's FOIA program.
    (3) Monitoring and reporting on FOIA implementation and performance 
for the Postal Service.
    (b) The Chief Privacy Officer, under the Vice President and 
Consumer Advocate, is responsible for administering records and 
information management policies and for the compliance of all 
handbooks, directives, and instructions in support of this policy.
    (c) The Manager, Records Office, under the Privacy Office, 
administers the Postal Service release of information and privacy of 
information programs with the assistance of FOIA coordinators in 
Headquarters departments and the Consumer Affairs function of area and 
district offices.
    (d) Freedom of Information Act Public Liaisons are responsible for 
the following:
    (1) Managing FOIA Requester Service Centers (RSCs).
    (2) Receiving concerns of requesters about the service provided by 
the FOIA RSC following an initial response.
    (3) Ensuring a service-oriented response to requests and FOIA-
related inquiries.
    (4) Reporting to the Chief FOIA Officer on their activities.
    (e) Freedom of Information Act Requester Service Centers. The FOIA 
Requester Service Centers are responsible for the following:
    (1) Facilitating communication between the Postal Service and FOIA 
requesters.
    (2) Providing information to requesters concerning the status of 
FOIA requests and information about responses to such requests.
    (f) Freedom of Information Act Coordinator. The FOIA Coordinator, 
which is an ad hoc position located within each Headquarters 
department, area, and district office, is responsible for the 
following:
    (1) Coordinating FOIA requests referred to or received by their 
functional or geographical area.
    (2) Providing procedural guidance, upon request, to records 
custodians.
    (3) Assisting the Manager of the Records Office with national 
records management activities, such as annual reporting of local FOIA 
and Privacy Act activities.
    (g) Records Custodians are responsible for ensuring that records 
within their facilities or organizations are managed according to 
Postal Service policies. Vice presidents or their designees are the 
custodians of records maintained at Headquarters. In the field, the 
records custodian is the head of a Postal Service facility such as an 
area, district, Post Office\TM\, or other Postal Service installation 
or designee that maintains Postal Service records. Senior medical 
personnel are the custodians of restricted medical records maintained 
within Postal Service facilities. The Custodian of Employee Assistance 
Program (EAP) records is the Postal Service counselor, a supplier, or 
the public health service, whichever provided the services.
    (h) Postal Service managers are responsible for administering 
records and information management policies and for complying with all 
handbooks, directives, and instructions in support of this policy.
    4. Revise part 262 to read as follows:

PART 262--RECORDS AND INFORMATION MANAGEMENT DEFINITIONS

Sec.
262.1 Purpose and scope.
262.2 Officials.
262.3 Information.
262.4 Records.
262.5 Systems (Privacy).
262.6 Retention and disposal.
262.7 Non-records.

    Authority: 5 U.S.C. 552, 552a; 39 U.S.C. 401


Sec.  262.1  Purpose and scope.

    This part contains the official definition of those basic records 
and information management terms that are frequently used throughout 
Postal Service regulations and directives.


Sec.  262.2  Officials.

    (a) Chief Privacy Officer. The Chief Privacy Officer (CPO) is 
responsible for the issuance of policy on the protection of privacy and 
the release of Postal Service records with the power to authorize the 
disclosure of such records and to delegate or take appropriate action 
if that policy is not adhered to or if questions of interpretation or 
procedure arise. The CPO directs the activities of the Privacy Office 
and the Records Office.
    (b) Manager, Records Office. The Manager, Records Office, manages 
the Records Office, and is responsible for establishing procedures and 
guidelines to ensure that record management practices are in compliance 
with the Privacy Act and FOIA. The Manager,

[[Page 79736]]

Records Office, may also delegate or take appropriate action if 
policies are not adhered to or if questions of interpretation or 
procedures arise.
    (c) Records Custodian. The postmaster or other head of a facility, 
such as an area vice president, district manager, or head of a postal 
installation or department, who maintains Postal Service records. Vice 
presidents are the custodians of records maintained at Headquarters. 
Senior medical personnel are the custodians of restricted medical 
records maintained within postal facilities.
    (d) Manager, Corporate Information Security Office. The Manager, 
Corporate Information Security Office, is responsible for the 
following:
    (1) Ensuring compliance with information security policies, 
including the protection of information resources containing customer, 
employee, or other individuals' information.
    (2) Safeguarding and disposing of electronic records (including e-
mails) that are maintained in information systems, including those that 
are subject to legal holds.
    (3) Serving as the central contact for information security issues 
and providing security consultations as requested.
    (e) Records Office. The Records Office is responsible for the 
issuance of policy on the maintenance and disposition of Postal Service 
records and information, and to delegate or take appropriate action if 
such policy is not adhered to or if questions of interpretation or 
procedure arise.


Sec.  262.3  Information.

    Data combined with the knowledge of its context and having the 
potential to serve a Postal Service use. The Postal Service uses four 
designations for such records: Sensitive, critical, classified, and 
vital.
    (a) Sensitive information. Records identified by the Postal Service 
as personal and business information which need assurance for 
confidentiality and integrity.
    (b) Critical information. Records that must be available in order 
for the Postal Service to effectively perform its mission and meet 
legally assigned responsibilities and for which special precautions are 
taken to ensure accuracy, relevance, timeliness, and completeness.
    (c) Classified information. Records that contain information about 
national defense and foreign relations that have been determined under 
relevant executive orders to require protection against unauthorized 
disclosure. Classified records in the custody of the Postal Service are 
managed by the Inspection Service.
    (d) Vital information. Records that must be available in the event 
of an emergency in order to ensure the continuity of Postal Service 
operations and the preservation of the rights and interest of the 
Postal Service, its employees, suppliers, and customers. Loss of or 
damage to these records means the Postal Service would not be able to 
re-establish normal business operations.


Sec.  262.4  Records.

    Recorded information, regardless of media, format, or physical 
characteristics, including electronic data, developed or received by 
the Postal Service in connection with the transaction of its business 
and retained in its custody; for machine-readable records, a collection 
of logically related data treated as a unit.
    (a) Active record--Information that is used for conducting current 
business.
    (b) Inactive record--Information that is not used for conducting 
current business, but for which the retention period has not yet 
expired.
    (c) Permanent record--A record determined as having sufficient 
historical or other value to warrant continued preservation. All other 
records are considered temporary and must be scheduled for disposal.
    (d) Temporary record--A record determined to have insufficient 
value (on the basis of current standards) to warrant its permanent 
preservation.
    (1) Emergency operating records. Certain vital records necessary to 
support essential functions of the Postal Service during and 
immediately following a national emergency.
    (2) Rights and interest records. Certain vital records maintained 
to ensure the preservation of the rights and interests of the Postal 
Service, its employees, contractors, and customers.


Sec.  262.5  Systems (Privacy).

    (a) Privacy Act system of records. A Postal Service system 
containing information about individuals, including mailing lists, from 
which information is retrieved by the name of an individual or by some 
identifying number or symbol assigned to the individual, such as a 
Social Security Account Number.
    (b) Individual (record subject). Individual consumer, employee, or 
other individual. Does not include sole proprietorships, partnerships, 
or corporations. A business firm identified by the name of one or more 
persons is not an individual.
    (c) Computer matching program. A ``matching program,'' as defined 
in the Privacy Act, 5 U.S.C. 552a(a)(8), is subject to the matching 
provisions of the Act, published guidance of the Office of Management 
and Budget, and these regulations. The term ``matching program'' 
includes any computerized comparison of:
    (1) A Postal Service automated system of records with an automated 
system of records of another Federal agency, or with non-Federal 
records, for the purpose of:
    (i) Establishing or verifying the eligibility of, or continuing 
compliance with statutory and regulatory requirements by, applicants 
for, recipients or beneficiaries of, participants in, or providers of 
services with respect to cash or in-kind assistance or payments under 
Federal benefit programs, or
    (ii) Recouping payments or delinquent debts under such Federal 
benefit programs.
    (2) A Postal Service automated personnel or payroll system of 
records with another automated personnel or payroll system of records 
of the Postal Service or other Federal agency or with non-Federal 
records.
    (d) Other computer matching activities. (1) The following kinds of 
computer matches are specifically excluded from the term ``matching 
program'':
    (i) Statistical matches whose purpose is solely to produce 
aggregate data stripped of personal identifiers.
    (ii) Statistical matches whose purpose is in support of any 
research or statistical project.
    (iii) Law enforcement investigative matches whose purpose is to 
gather evidence against a named person or persons in an existing 
investigation.
    (iv) Tax administration matches.
    (v) Routine administrative matches using Federal personnel records, 
provided that the purpose is not to take any adverse action against an 
individual.
    (vi) Internal matches using only records from Postal Service 
systems of records, provided that the purpose is not to take any 
adverse action against any individual.
    (vii) Matches performed for security clearance background checks or 
for foreign counterintelligence.
    (2) Although these and other matching activities that fall outside 
the definition of ``matching program'' are not subject to the matching 
provisions of the Privacy Act or OMB guidance, other provisions of the 
Act and of these regulations may be applicable. No matching program or 
other matching activity may be conducted without the prior approval of 
the Records Office.

[[Page 79737]]

Sec.  262.6  Retention and disposal.

    (a) Records control schedule. A directive describing records series 
that are maintained by components of the Postal Service. It provides 
maintenance, retention, transfer, and disposal instructions for each 
series listed, and serves as the authority for postal officials to 
implement such instructions.
    (b) Disposal (records). The permanent removal of records or 
information from Postal Service custody. Included are the following:
    (1) Transferring to the National Archives.
    (2) Donating to the Smithsonian Institution, local museums, or 
historical societies.
    (3) Selling as waste material.
    (4) Discarding.
    (5) Physically destroying.
    (c) Retention period. The authorized length of time that a records 
series must be kept before its disposal. The period is usually stated 
in terms of months or years, but sometimes is expressed as contingent 
upon the occurrence of an event. Usually the retention period refers to 
the period of time between the creation of a series and its authorized 
disposal date, however, in some cases it refers to the length of time 
between the cutoff point and the disposal date.


Sec.  262.7  Non-records.

    (a) Non-record material. Includes blank forms and surplus 
publications, handbooks, circulars, bulletins, announcements, and other 
directives as well as any material not directly associated with the 
transaction of Postal Service business.
    (b) Personal papers. Those materials created or received during an 
individual's period of employment with the Postal Service that are of a 
purely private or nonofficial character, or that were neither created 
nor received in connection with Postal Service business.
    5. Revise part 263 to read as follows:

PART 263--RECORDS RETENTION AND DISPOSITION

Sec.
263.1 Purpose and scope.
263.2 Policy.
263.3 Responsibility.
263.4 Records disposal.
263.5 Inquiries.

    Authority: 39 U.S.C. 401.


Sec.  263.1  Purpose and scope.

    This part contains the policy and general regulations pertaining to 
the retention and disposition of records and information throughout all 
organizational levels and components.


Sec.  263.2  Policy.

    It is the policy of the Postal Service to establish and maintain 
schedules specifying the retention periods required for all official 
and duplicate record copies. Furthermore, it is the policy that all 
duplicate record copies and non-record material will be disposed of as 
soon as they have served their purpose.


Sec.  263.3  Responsibility.

    (a) Records Office. The Records Office has the responsibility for 
providing for the establishment of retention schedules and has the 
authority to approve them. Furthermore, that office has the authority 
to dispose of Postal Service records by transfer or destruction.
    (b) Records Custodians. Records Custodians are responsible for the 
retention and prompt disposal of records in their custody and for 
delegating, in writing, persons to perform these duties.


Sec.  263.4  Records disposal.

    All disposal of records containing sensitive information, i.e., 
transfers to records storage centers, destruction, transfers external 
to the Postal Service, and maintenance of accounting records regarding 
such disposal, must be accomplished in accordance with procedures 
issued by the Records Office.


Sec.  263.5  Inquiries.

    Inquiries regarding records maintenance and disposition should be 
directed to the Manager, Records Office, U.S. Postal Service, 475 
L'Enfant Plaza, SW., Washington, DC 20260, or by telephone at (202) 
268-2608.
    6. Revise part 264 to read as follows:

PART 264--VITAL RECORDS

Sec.
264.1 Purpose and scope.
264.2 Policy.
264.3 Responsibility.
264.4 Vital Records Program.

    Authority: 39 U.S.C. 401.


Sec.  264.1  Purpose and scope.

    Certain records are critical to the continuity of Postal Service 
operations or to the preservation of the rights and interests of the 
Postal Service, its employees, contractors, or customers. To ensure 
that these records are available when needed, specific controls are 
required which affect all organizational components having the custody 
of records defined as being ``vital.''


Sec.  264.2  Policy.

    It is the policy of the Postal Service to ensure the availability 
of all records considered critical to the continuity of its operations 
and the preservation of the rights and interests of the Postal Service, 
its employees, contractors, and customers. Vital records shall be 
routinely maintained at predesignated off-site locations to ensure 
their availability when needed by management and operating personnel.


Sec.  264.3  Responsibility.

    (a) Manager, Records Office. The Manager, Records Office, is 
responsible for categorizing records as vital, and in conjunction with 
the Chief Postal Inspector/Emergency Coordinator shall establish and 
maintain the vital records program and ensure compliance with 
supportive procedures.
    (b) Chief Postal Inspector. As the Postal Service's Emergency 
Coordinator, the Chief Postal Inspector shall establish and maintain, 
in coordination with the Office of the Deputy Postmaster General, Chief 
Operating Officer (DPMG, COO), a program to ensure that vital records 
are available at predesignated off-site locations for use during a 
national emergency.
    (c) Records Custodians. Records Custodians are responsible for 
maintaining a current record inventory list of their department's vital 
records. Vital records procedures must be followed, including the 
forwarding of vital records to predesignated off-site locations.
    (d) Executive Vice President, Chief Information Officer. In 
coordination with the records custodian, the Executive Vice President, 
Chief Information Officer is responsible for verifying that an adequate 
disaster recovery plan is in place for each department's electronic 
vital records. Information Technology will ensure that backup for 
electronic vital records is located at an appropriate facility away 
from the locations housing original electronic vital record with 
safeguards appropriate to ensure the quality and integrity of the vital 
records.


Sec.  264.4  Vital Records Program.

    Complete procedures concerning the identification, categorization, 
processing, protection, and transfer of vital records are provided by 
the Manager, Records Office, or the USPS Emergency Coordinator, as 
appropriate.
    7. Revise part 265 to read as follows:

PART 265--RELEASE OF INFORMATION

Sec.
265.1 Purpose and scope.
265.2 Policy.
265.3 Responsibility.
265.4 Inquiries.

[[Page 79738]]

265.5 Public reading rooms.
265.6 Availability of records.
265.7 Procedure for inspection and copying of records.
265.8 Business information; procedures for predisclosure 
notification to submitters.
265.9 Schedule of fees.
265.10 Annual report.
265.11 Compliance with subpoena duces tecum, court orders, and 
summonses.
265.12 Demands for testimony or records in certain legal 
proceedings.
265.13 Compliance with subpoenas, summonses, and court orders by 
postal employees within the Inspection Service where the Postal 
Service, the United States, or any other Federal agency is not a 
party.
Appendix A to Part 265--Fees for Computer Searches

    Authority: 5 U.S.C. 552; 5 U.S.C. App. 3; 39 U.S.C. 401, 403, 
410, 1001, 2601.


Sec.  265.1  Purpose and scope.

    (a) This part contains the regulations of the Postal Service 
relating to the availability to the public of Postal Service records. 
Included in this part are the regulations that implement part 552 of 
title 5, U.S.C., the ``Freedom of Information Act,'' insofar as it 
applies to the Postal Service.
    (b) Official records of the Postal Service made available pursuant 
to the requirements of the Act shall be furnished to members of the 
public as prescribed by this part.


Sec.  265.2  Policy.

    (a) It is the policy of the Postal Service to make its official 
records available to the public to the maximum extent consistent with 
the public interest. This policy requires a practice of full disclosure 
subject only to the specific exemptions required or authorized by law.
    (b) The exemptions from mandatory disclosure provided by section 
552(b) of title 5, and section 410(c) of title 39, U.S.C., for various 
types of records, reflect the fact that under some circumstances the 
public interest may be better served by leaving the disclosure of 
particular records to the discretion of the Postal Service than by 
requiring their disclosure. As to those records the disclosure of which 
is not prohibited by statute, Executive Order, or regulation, the 
discretion vested in the Postal Service is exercised after giving 
consideration to the following:
    (1) The effect of non-disclosure on the public's right to know 
about a particular matter.
    (2) The effect of disclosure on the right of privacy of any 
affected individuals.
    (3) The effect of disclosure on the public interest in the 
economical, efficient, and orderly operation of the nation's mail 
system.
    (4) Any other factors that may be relevant under the circumstances.


Sec.  265.3  Responsibility.

    (a) Records Custodian. Official records are in the custody of the 
postmaster or other head of a facility or department at which they are 
maintained, as defined at Sec.  261.4 (c) of this chapter. These 
custodians are responsible for responding in the first instance to 
requests from members of the public for Postal Service records.
    (b) Manager, Records Office. The Postal Service Manager, Records 
Office, under the Privacy Office, is responsible for the overall 
administration of this part, including the issuance of detailed 
instructions to custodians.
    (c) General Counsel. The General Counsel decides timely appeals 
authorized by this part.


Sec.  265.4  Inquiries.

    Inquiries regarding the availability of Postal Service records 
should be directed to the appropriate Freedom of Information Act (FOIA) 
RSC. If the appropriate FOIA RSC is not known, inquiries should be 
directed to the Manager, Records Office, U.S. Postal Service, 475 
L'Enfant Plaza, SW., Washington, DC 20260, telephone (202) 268-2608.


Sec.  265.5  Public reading rooms.

    The library of the Postal Service Headquarters, 475 L'Enfant Plaza, 
SW., Washington, DC 20260, serves as public reading room for the 
materials which are listed in paragraphs (a)(2), (3), (4) and (5) of 
Sec.  265.6 as available for public inspection and copying. Such of 
this material as has been created by the Postal Service on or after 
November 1, 1996, and has not been published and offered for sale, also 
will be available in electronic format at the Postal Service's Web site 
at http://www.usps.com/foia.


Sec.  265.6  Availability of records.

    (a) Records available to the public on request. (1) General. Postal 
Service records are available for inspection or copying at the request 
of any person, in accordance with the provisions of this part, except 
as otherwise provided by law or regulations, including but not limited 
to paragraphs (b) through (g) of this section. Certain categories of 
records of particular interest are available on a continuing basis as 
provided in paragraphs (a)(2), (3), and (4) of this section and are 
listed in a public index as provided in paragraphs (a)(4) and (5) of 
this section. Access to other records may be requested on an individual 
basis in accordance with the procedures provided in Sec.  265.7. 
Official records which are maintained on an electronic storage medium 
will normally be made available, in accordance with this part, as an 
exact duplicate of the requested original in a form readable by the 
human eye, such as a computer printout. On request, records will be 
provided in a different form or format if they are maintained in the 
requested form or format or if they can be readily reproduced in the 
requested form or format.
    (2) Opinions. All final opinions and orders made in the 
adjudication of cases by the Judicial Officer and Administrative Law 
Judges, all final determinations pursuant to section 404(b) of title 
39, United States Code, to close or consolidate a Post Office, or to 
disapprove a proposed closing or consolidation, all advisory opinions 
concerning the private express statutes issued pursuant to 39 CFR 
310.6, and all bid protest decisions are on file and available for 
inspection and copying at the Headquarters Library and, if created on 
or after November 1, 1996, also at the Postal Service's Web site 
identified at Sec.  265.5.
    (3) Administrative manuals and instructions to staff. The manuals, 
instructions, and other publications of the Postal Service that affect 
members of the public are available through the Headquarters library 
and at many Post Offices and other postal facilities. Those which are 
available to the public but are not listed for sale may be inspected in 
the Headquarters library, at any postal facility that maintains a copy, 
or, if created on or after November 1, 1996, through the Web site 
identified at Sec.  265.5. Copies of publications which are not listed 
as for sale or as available free of charge may be obtained by paying a 
fee in accordance with Sec.  265.9.
    (4) Previously released records. Records processed and disclosed 
after March 31, 1997, in response to a Freedom of Information Act 
request, which the Postal Service determines have become or are likely 
to become the subject of subsequent requests for substantially the same 
records, are available for inspection and copying at the Headquarters 
library. Any such records created by the Postal Service on or after 
November 1, 1996, also will be available at the Postal Service's FOIA 
Web site identified at Sec.  265.5. Records described in this paragraph 
that were not created by, or on behalf of, the Postal Service generally 
will not be available at the Postal Service's Web site. Records will be 
available in the form in which they were originally disclosed, except 
to the extent that they

[[Page 79739]]

contain information that is not appropriate for public disclosure and 
may be withheld pursuant to this section. Any deleted material will be 
marked and the applicable exemption(s) indicated in accordance with 
Sec.  265.7(d)(3). A general index of the records described in this 
paragraph is available for inspection and copying at the Headquarters 
library.
    (5) Public index. (i) A public index is maintained in the 
Headquarters library and at the Postal Service's Web site of all final 
opinions and orders made by the Postal Service in the adjudication of 
cases; Postal Service policy statements, which may be relied on as 
precedents in the disposition of cases; administrative staff manuals 
and instructions that affect the public; and other materials which the 
Postal Service elects to index and make available to the public on 
request in the manner set forth in paragraph (a) of this section.
    (ii) The index contains references to matters issued after July 4, 
1967, and may reference matters issued prior to that date.
    (iii) Any person may arrange for the inspection of any matter in 
the public index in accordance with the procedures of Sec.  265.7.
    (iv) Copies of the public index and of matters listed in the public 
index may be purchased through the Headquarters library with payment of 
fees as listed in the index or as provided in Sec.  265.9.
    (v) Materials listed in the public index that were created on or 
after November 1, 1996, will also be available in electronic format at 
the Postal Service's Web site at http://www.usps.gov/foia.
    (6) Listings of employees' names. Upon written request, the Postal 
Service will, to the extent required by law, provide a listing of 
postal employees working at a particular postal facility.
    (b) Records not subject to mandatory public disclosure. Certain 
classes of records are exempt from mandatory disclosure under 
exemptions contained in the Freedom of Information Act and in section 
410(c) of title 39, U.S.C. The Postal Service will exercise its 
discretion, in accordance with the policy stated in Sec.  265.2, as 
implemented by instructions issued by the Records Office with the 
approval of the General Counsel, in determining whether the public 
interest is served by the inspection or copying of records that are:
    (1) Related solely to the internal personnel rules and practices of 
the Postal Service.
    (2) Trade secrets, or privileged or confidential commercial or 
financial information, obtained from any person.
    (3) Information of a commercial nature, including trade secrets, 
whether or not obtained from a person outside the Postal Service, which 
under good business practice would not be publicly disclosed. This 
class includes, but is not limited to:
    (i) Information pertaining to methods of handling valuable 
Registered Mail[supreg] items.
    (ii) Records of money orders, except as provided in R900 of the 
Mailing Standards of the United States Postal Service, Domestic Mail 
Manual (DMM[supreg]).
    (iii) Technical information concerning postage meters and 
prototypes submitted for Postal Service approval prior to leasing to 
mailers.
    (iv) Reports of market surveys conducted by or under contract on 
behalf of the Postal Service.
    (v) Records indicating rural carrier lines of travel.
    (vi) Records compiled within the Postal Service that would be of 
potential benefit to persons or firms in economic competition with the 
Postal Service.
    (vii) Information that, if publicly disclosed, could materially 
increase procurement costs.
    (viii) Information that, if publicly disclosed, could compromise 
testing or examination materials.
    (4) Interagency or internal memoranda or letters that would not be 
available by law to a private party in litigation with the Postal 
Service.
    (5) Reports and memoranda of consultants or independent 
contractors, except to the extent they would be required to be 
disclosed if prepared within the Postal Service.
    (6) Files personal in nature, including medical and personnel 
files, the disclosure of which would constitute a clearly unwarranted 
invasion of personal privacy.
    (7) Information prepared for use in connection with proceedings 
under chapter 36 of title 39, U.S.C., relating to rate, classification, 
and service changes.
    (8) Information prepared for use in connection with the negotiation 
of collective bargaining agreements under chapter 12 of title 39, 
U.S.C., or minutes of, or notes kept during, negotiating sessions 
conducted under such chapter.
    (9) Other matter specifically exempted from disclosure by statute.
    (c) Records or information compiled for law enforcement purposes. 
(1) Investigatory files compiled for law enforcement purposes, whether 
or not considered closed, are exempt by statute from mandatory 
disclosure except to the extent otherwise available by law to a party 
other than the Postal Service, 39 U.S.C. 410(c)(6). As a matter of 
policy, however, the Postal Service will normally make records or 
information compiled for law enforcement purposes available upon 
request unless the production of these records:
    (i) Could reasonably be expected to interfere with enforcement 
proceedings;
    (ii) Would deprive a person of a right to a fair trial or an 
impartial adjudication;
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a state, local, or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis, and, in the case of a record or information 
compiled by a criminal law enforcement authority (such as the Postal 
Inspection Service) in the course of a criminal investigation, or by an 
agency conducting a lawful national security intelligence 
investigation, information furnished by a confidential source;
    (v) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law; or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual.
    (2) Whenever a request is made which involves access to records 
described in Sec.  265.6(c)(1)(i), and
    (i) The investigation or proceeding involves a possible violation 
of criminal law; and
    (ii) There is reason to believe that,
    (A) The subject of the investigation or proceeding is not aware of 
its pendency, and
    (B) Disclosure of the existence of the records could reasonably be 
expected to interfere with enforcement proceedings, the Postal Service 
may, during only such time as that circumstance continues, treat the 
records as not subject to the requirements of the Freedom of 
Information Act.
    (3) Whenever informant records maintained by a criminal law 
enforcement agency (such as the Postal Inspection Service) under an 
informant's name or personal identifier are requested by a third party 
according to the informant's name or personal identifier, the records 
may be treated as not subject to the requirements of the Freedom of 
Information Act unless the informant's status as an informant has been 
officially confirmed.
    (4) Authority to disclose records or information compiled for law

[[Page 79740]]

enforcement purposes to persons outside the Postal Service must be 
obtained from the Chief Postal Inspector, U.S. Postal Inspection 
Service, 1735 North Lynn Street, Arlington, VA 22209, or designee.
    (d) Disclosure of names and addresses of customers. Upon request, 
the names and addresses of specifically identified Postal Service 
customers will be made available only as follows:
    (1) Change of address. The new address of any specific customer who 
has filed a permanent or temporary change-of-address order (by 
submitting PS Form 3575, a handwritten order, or an electronically 
communicated order) will be furnished to any person, except that the 
new address of a specific customer who has indicated on the order that 
the address change is for an individual or an entire family will be 
furnished only in those circumstances stated at paragraph (d)(5) of 
this section. Disclosure will be limited to the address of the 
specifically identified individual about whom the information is 
requested (not other family members or individuals whose names may also 
appear on the change-of-address order). The Postal Service reserves the 
right not to disclose the address of an individual for the protection 
of the individual's personal safety. Other information on PS Form 3575 
or copies of the form will not be furnished except in those 
circumstances stated at paragraphs (d)(5)(i), (d)(5)(iii), or 
(d)(5)(iv) of this section.
    (2) Name and address of permit holder. The name and address of the 
holder of a particular bulk mail permit, permit imprint, or similar 
permit (but not including postage meter licenses), and the name of any 
person applying for a permit on behalf of a holder will be furnished to 
any person upon the payment of any fees authorized by paragraph (b) of 
Sec.  265.9. For the name and address of a postage meter license 
holder, see paragraph (d)(3) of this section. (Lists of permit holders 
may not be disclosed to members of the public. See paragraph (e)(1) of 
this section.)
    (3) Name and address of postage evidencing user. The name and 
address of an authorized user of a postage meter or PC Postage product 
(postage evidencing systems) printing a specified indicium will be 
furnished to any person upon the payment of any fees authorized by 
paragraph (b) of Sec.  265.9, provided the user is using the postage 
meter or PC Postage product for business purposes. The request for this 
information must be sent to the manager of Postage Technology 
Management, Postal Service Headquarters. The request must include the 
original or a photocopy of the envelope or wrapper on which the postage 
meter or PC postage indicium in question is printed, and a copy or 
description of the contents to support that the sender is a business or 
firm and not an individual. (Lists of authorized users of postage 
meters or PC Postage products may not be disclosed to members of the 
public.)
    (4) Post Office boxholder information. Information from PS Form 
1093, Application for Post Office Box or Caller Service, will be 
provided as follows:
    (i) Except as provided in paragraph (d)(4)(iii) of this section, 
the boxholder applicant name and address from PS Form 1093 will be 
provided only in those circumstances stated in paragraphs (d)(5)(i) 
through (iii) of this section.
    (ii) Except as provided in paragraph (d)(4)(iii) of this section, 
the names of persons listed as receiving mail, other than the boxholder 
applicant, will be furnished from PS Form 1093 only in those 
circumstances stated in paragraphs (d)(5)(i) and (iii) of this section.
    (iii) When a copy of a protective order has been filed with the 
postmaster, information from PS Form 1093 will not be disclosed except 
pursuant to the order of a court of competent jurisdiction.
    (5) Exceptions. Except as otherwise provided in these regulations, 
names, or addresses of Postal Service customers will be furnished only 
as follows:
    (i) To a Federal, state, or local government agency upon prior 
written certification that the information is required for the 
performance of its duties. The Postal Service requires government 
agencies to use the format appearing at the end of this section when 
requesting the verification of a customer's current address or a 
customer's new mailing address. If the request lacks any of the 
required information or a proper signature, the postmaster will return 
the request to the agency, specifying the deficiency in the space 
marked ``OTHER''. A copy of PS Form 1093 may be provided.
    (ii) To a person empowered by law to serve legal process, or the 
attorney for a party in whose behalf service will be made, or a party 
who is acting pro se, upon receipt of written information that 
specifically includes all of the following:
    (A) A certification that the name or address is needed and will be 
used solely for service of legal process in connection with actual or 
prospective litigation;
    (B) A citation to the statute or regulation that empowers the 
requester to serve process, if the requester is other than the attorney 
for a party in whose behalf service will be made, or a party who is 
acting pro se;
    (C) The names of all known parties to the litigation;
    (D) The court in which the case has been or will be commenced;
    (E) The docket or other identifying number, if one has been issued;
    (F) The capacity in which the boxholder is to be served, e.g., 
defendant or witness. By submitting such information, the requester 
certifies that it is true. The address of an individual who files with 
the postmaster a copy of a protective court order will not be disclosed 
except as provided under paragraphs (d)(5)(i), (iii), or (iv) of this 
section. A copy of PS Form 1093 will not be provided.

    Note 1 to paragraph (d)(5)(ii): The Postal Service suggests use 
of the standard format appearing at the end of this section when 
requesting information under this paragraph. When using the standard 
format on the submitter's own letterhead, the standard format must 
be used in its entirety. The warning statement and certification 
specifically must be included immediately before the signature 
block. If the request lacks any of the required information or a 
proper signature, the postmaster will return it to the requester 
specifying the deficiency.


    Note 2 to paragraph (d)(5)(ii): The term pro se means that a 
party is not represented by an attorney but by himself or herself.

    (iii) In compliance with a subpoena or court order, except that 
change of address or boxholder information that is not otherwise 
subject to disclosure under these regulations may be disclosed only 
pursuant to a court order.
    (iv) To a law enforcement agency, for oral requests made through 
the Inspection Service, but only after the Inspection Service has 
confirmed that the information is needed in the course of a criminal 
investigation. (All other requests from law enforcement agencies should 
be submitted in writing to the postmaster as in paragraph (d)(5)(i) of 
this section.)
    (6) Jury service. The mailing address of any customer sought in 
connection with jury service, if known, will be furnished without 
charge upon prior written request to a court official, such as a judge, 
court clerk, or jury commissioner.
    (7) Address verification. The address of a postal customer will be 
verified at the request of a Federal, State, or local government agency 
upon written certification that the information is required for the 
performance of the agency's duties. ``Verification'' means advising 
such an agency whether or not its address for a postal customer is one 
at which mail for that customer is

[[Page 79741]]

currently being delivered. ``Verification'' neither means nor implies 
knowledge on the part of the Postal Service as to the actual residence 
of the customer or as to the actual receipt by the customer of mail 
delivered to that address. The Postal Service requires government 
agencies to use the format appearing at the end of this section when 
requesting the verification of a customer's current address or a 
customer's new mailing address. If the request lacks any of the 
required information or a proper signature, the postmaster will return 
the request to the agency, specifying the deficiency in the space 
marked ``OTHER''.
    (8) Business/Residence location. If the location of a residence or 
a place of business is known to a Postal Service employee, whether as a 
result of official duties or otherwise, the employee may, but need not, 
disclose the location or give directions to it. No fee is charged for 
such information.
    (9) Private mailbox information. Information from PS Form 1583, 
Application for Delivery of Mail Through Agent, will be provided as 
follows:
    (i) Except as provided in paragraph (d)(9)(iii) of this section, 
information from PS Form 1583 will be provided only in the circumstance 
stated in paragraph (d)(5)(iii) of this section.
    (ii) To the public only for the purpose of identifying a particular 
address as an address of an agent to whom mail is delivered on behalf 
of other persons. No other information, including, but not limited to, 
the identities of persons on whose behalf agents receive mail, may be 
disclosed to the public from PS Form 1583.
    (iii) Information concerning an individual who has filed a 
protective court order with the postmaster will not be disclosed except 
pursuant to the order of a court of competent jurisdiction.
    (e) Information not available for public disclosure. (1) Except as 
provided by paragraph (a)(6) of this section, the Postal Service and 
its officers and employees shall not make available to the public by 
any means or for any purpose any mailing list or other list of names or 
addresses (past or present) of postal patrons or other persons.
    (2) Records or other documents which are classified or otherwise 
specifically authorized by Executive Order 12356 and implementing 
regulations to be kept secret in the interest of the national defense 
or foreign policy are not subject to disclosure pursuant to this part.
    (3) Records consisting of trade secrets or confidential financial 
data, the disclosure of which is prohibited by section 1905 of title 
18, U.S.C., are not subject to disclosure pursuant to this part.
    (4) Other records, the disclosure of which is prohibited by 
statute, are not subject to disclosure pursuant to this part.
    (f) Protection of the right of privacy. If any record required or 
permitted by this part to be disclosed contains the name of, or other 
identifying details concerning, any person, including an employee of 
the Postal Service, the disclosure of which would constitute a clearly 
unwarranted invasion of personal privacy, the name or other identifying 
details shall be deleted before the record is disclosed and the 
requester so informed.
    (g) Disclosure in part of otherwise exempt record. Any reasonably 
segregable portion of a record shall be provided after deleting the 
information, which is neither subject to mandatory disclosure nor 
available as a matter of discretion.
BILLING CODE 7710-12-P

[[Page 79742]]

[GRAPHIC] [TIFF OMITTED] TP30DE08.283


[[Page 79743]]


[GRAPHIC] [TIFF OMITTED] TP30DE08.284

Sec.  265.7  Procedure for inspection and copying of records.

    (a) Submission of requests.--(1) Form and content of request. To 
permit expeditious handling and timely response in accordance with the 
provisions of this part, a request to inspect or to obtain a copy of an 
identifiable Postal Service record shall be in writing and bear the 
caption ``Freedom of Information Act Request'' or otherwise be clearly 
and prominently identified as a request for records pursuant to the 
Freedom of Information Act. A request shall be clearly and prominently 
identified as such on the envelope or other cover. Other requests for 
information will be considered informal requests and will be handled as 
expeditiously as practicable but not necessarily within the time 
limitations set forth in Sec.  265.7(b). An informal request will be 
granted or denied according to the substantive rules in Sec.  265.6, if 
found to be a request for a record. A Freedom of Information Act 
request shall identify the record sought as completely as possible, by 
name, description, or subject matter, and be sufficient to permit the 
custodian to locate it with a reasonable amount of effort. The request 
may state the maximum amount of fees for which the requester is willing 
to accept liability without prior notice. See paragraph (f)(2) of Sec.  
265.8. If no amount is stated,

[[Page 79744]]

the requester will be deemed willing to accept liability for fees not 
to exceed $25.
    (2) To whom submitted. A request shall be submitted to the 
appropriate Freedom of Information Act (FOIA) Requester Service Center 
(RSC). If the FOIA RSC is not known, inquiry should be directed to the 
Manager, Records Office, U.S. Postal Service, 475 L'Enfant Plaza, SW., 
Washington, DC 20260, telephone 202-268-2608. The FOIA RSC will either 
process the request or refer the request to the appropriate records 
custodian(s). The FOIA RSC will advise the requester of any such 
referral. A request that is not initially submitted to the appropriate 
FOIA RSC shall be deemed to have been received by the Postal Service 
for purposes of computing the time for response in accordance with 
Sec.  265.7(b) at the time that it is actually received by the 
appropriate FOIA RSC, or at the time the request is referred to the 
appropriate records custodian(s) by an FOIA RSC. If a request seeks 
records maintained at two or more facilities, the custodian shall be 
deemed to be the next senior common supervisor of the heads of the 
facilities, e.g., district manager, area vice president. The Records 
Office is deemed to be the custodian, for purposes of this part, in all 
instances in which a request is for a listing of postal employees. See 
Sec.  265.6(a)(6).
    (3) Reasons for request. In view of the possibility that some or 
all of the records may be exempt from mandatory disclosure, the 
requester may state any reasons why the record should nevertheless be 
made available to him even if exempt.
    (4) Request for waiver of fees. The requester may ask that fees or 
the advance payment of fees be waived in whole or in part. A fee waiver 
request shall indicate how the information will be used; to whom it 
will be provided; whether the requester intends to use the information 
for resale at a fee above actual cost; any personal or commercial 
benefit that the requester expects as a result of disclosure; in what 
manner the general public will benefit from disclosure; and information 
as to the intended user's identity, qualifications, expertise in the 
subject area, and ability and intention to disseminate the information 
to the public. (See Sec.  265.9(g)(3).)
    (5) Categorical requests. A request for all or substantially all of 
the records within a specific category will be deemed a reasonable 
description of those records only if it is possible, without further 
information, to determine which particular records are sought. See 
paragraph (b)(3) of this section concerning the providing of additional 
information.
    (6) Request for records located at numerous facilities. A request 
for records which are, or may be, located at all or a substantial 
number of Post Offices or other postal facilities will be deemed to be 
a reasonable description only of those records as are maintained at the 
Post Offices or other facilities specifically identified in the 
request.
    (b) Responsibilities of the records custodian. (1) The records 
custodian of the requested record is the person responsible for 
determining whether to grant or to deny the request. A custodian who is 
not an officer as defined in Sec.  221.4 of this chapter, however, may 
obtain the advice of Field Managing Counsel. The custodian should seek 
advice as soon as possible after receipt of the request so as to 
provide adequate time for legal review. Denial must be made in 
accordance with paragraph (d) of this section.
    (2) The records custodian shall make the determination whether to 
release or deny the record(s) within 20 working days (i.e., exclusive 
of Saturdays, Sundays, and holidays) of receiving the request, and more 
rapidly if feasible. The custodian and the requester may, by mutual 
agreement, preferably in writing, establish a different response 
period.
    (3) If a requested record cannot be located from the information 
supplied, the requester should be given an opportunity to supply 
additional information and, if feasible, to confer with the custodian 
or his/her representative, in an attempt to provide a reasonable 
description of the records sought. If additional information is 
furnished, the request will be deemed to have been received by the 
custodian when sufficient additional information to identify and locate 
the record with a reasonable amount of effort has been received.
    (4) The records custodian shall make reasonable efforts to search 
for the records in electronic form or format, except when such efforts 
would significantly interfere with the operation of the automated 
information system.
    (5) The 20-working-day response period allowed in paragraph (b)(2) 
of this section may be extended by the custodian, after consultation 
with Field Managing Counsel or with the General Counsel, if the 
custodian is at Headquarters, for a period not to exceed an additional 
10 working days, except as provided in paragraph (b)(7) of this 
section, when, and to the extent, reasonably necessary to permit the 
proper processing of a particular request, under one or more of the 
following unusual circumstances:
    (i) The request requires a search for and collection of records 
from a facility other than that processing the request.
    (ii) The request requires the search for, and collection and 
appropriate examination of, a voluminous amount of separate and 
distinct records.
    (iii) The request requires consultation:
    (A) With another agency having a substantial interest in the 
determination of whether to comply with the request, or
    (B) Among two or more components of the Postal Service having 
substantial subject matter interest in the determination of whether to 
comply with the request.
    (6) When the custodian finds that the additional time is required, 
he/she shall acknowledge the request in writing within the initial 20-
day response period, state the reason for the delay, and indicate the 
date on which a decision as to disclosure is expected.
    (7) If a request cannot be processed within the additional time 
provided by paragraph (b)(5) of this section, in spite of the exercise 
of due diligence, the custodian shall notify the requester of the 
exceptional circumstances preventing timely compliance and of the date 
by which it is expected that the determination will be made. The 
custodian also shall provide the requester an opportunity to limit the 
scope of the request so that it may be processed within the extended 
time limit, or an opportunity to arrange with the custodian an 
alternative time frame for processing the request or a modified 
request. The custodian shall nonetheless make a determination on the 
request as promptly as possible.
    (8) If a requested record is known to have been destroyed, disposed 
of, or otherwise not to exist, the requester shall be so notified.
    (c) Compliance with request upon affirmative determination by 
custodian. (1) When a requested record has been identified and is to be 
disclosed in whole or in part, the custodian shall ensure that the 
record is made available promptly and shall immediately notify the 
requester where and when and under what reasonable conditions, if any, 
including the payment of fees, the record will be available for 
inspection, or copies will be available. Postal Service records will 
normally be available for inspection and copying during regular 
business hours at the postal facilities at which they are maintained. 
The custodian may, however, designate other reasonable locations and 
times for inspection and copying of some or all of the records within 
his custody.

[[Page 79745]]

    (2) Any fees authorized or required to be paid in advance by Sec.  
265.9(f)(3) shall be paid by the requester before the record is made 
available or a copy is furnished, unless payment is waived or deferred 
pursuant to Sec.  265.9(g).
    (3) A custodian complying with a request may designate a 
representative to monitor any inspection or copying.
    (d) Denial of request. (1) A reply denying a request in whole or in 
part shall be in writing, signed by the custodian or his designee, and 
shall include:
    (i) A statement of the reason for, or justification of, the denial 
(e.g., records personal in nature), including, if applicable, a 
reference to the provision or provisions of Sec.  265.6 authorizing the 
withholding of the record and a brief explanation of how each provision 
applies to the records requested.
    (ii) If entire records or pages are withheld, a reasonable estimate 
of the number of records or pages, unless providing such estimate would 
harm an interest protected by the exemption relied upon.
    (iii) A statement of the right to appeal and of the appeal 
procedure within the Postal Service (described in paragraph (e) of this 
section).
    (2) The custodian is ordinarily the person responsible for the 
denial of the request. If the denial of a particular request has been 
directed by higher authority, however, the name and title or position 
of the person directing the denial shall be given in the reply to the 
requester in place of the custodian as the person responsible for the 
denial, and a copy of the denial shall be sent to that person.
    (3) When information is deleted from a record that is disclosed in 
part, the custodian shall indicate, on the released portion of the 
record, the amount of information deleted, unless including that 
indication would harm an interest protected by the exemption relied on. 
The indication must appear, if technically feasible, at the place in 
the record where such deletion is made.
    (e) Appeal procedure. (1) If a request to inspect or to copy a 
record, or a request for expedited processing of the request, is 
denied, in whole or in part, if no determination is made within the 
period prescribed by this section, or if a request for waiver of fees 
is not granted, the requester may appeal to the General Counsel, U.S. 
Postal Service, 475 L'Enfant Plaza, SW., Washington, DC 20260.
    (2) The requester shall submit his appeal in writing within 30 days 
of the date of the denial or of the other action complained of, or 
within a reasonable time if the appeal is from a failure of the 
custodian to act. The General Counsel may, in his/her discretion, 
consider late appeals.
    (3) In the event of the denial of a request or of other action or 
failure to act on the part of a custodian from which no appeal is 
taken, the General Counsel may, if he/she considers that there is doubt 
as to the correctness of the custodian's action or failure to act, 
review the action or failure to act as though an appeal pursuant to 
this section had been taken.
    (4) A letter of appeal should include, as applicable:
    (i) A copy of the request, of any notification of denial or other 
action, and of any other related correspondence.
    (ii) A statement of the action, or failure to act, from which the 
appeal is taken.
    (iii) A statement of the reasons why the requester believes the 
action or failure to act is erroneous.
    (iv) A statement of the relief sought.
    (f) Action on appeals. (1) The decision of the General Counsel or 
his designee constitutes the final decision of the Postal Service on 
the right of the requester to inspect or copy a record, or to expedited 
processing of the request, as appropriate. The General Counsel, will 
give prompt consideration to an appeal for expedited processing of a 
request. All other decisions normally will be made within 20 working 
days from the time of the receipt by the General Counsel. The 20-day 
response period may be extended by the General Counsel, or his 
designee, for a period not to exceed an additional 10 working days when 
reasonably necessary to permit the proper consideration of an appeal, 
under one or more of the unusual circumstances set forth in paragraph 
(b)(5) of this section. The aggregate number of additional working days 
utilized pursuant to this paragraph (f)(1) and paragraph (b) of this 
section, however, may not exceed 10.
    (2) The decision on the appeal shall be in writing. If the decision 
sustains a denial of a record, in whole or in part, or if it denies 
expedited processing, it shall state the justification therefore and 
shall inform the requester of his right to judicial review. In the case 
of records withheld, the decision also shall specify any exemption or 
exemptions relied on and the manner in which they apply to the record, 
or portion thereof, withheld.
    (3) If not prohibited by or under law, the General Counsel, or his 
designee may direct the disclosure of a record even though its 
disclosure is not required by law or regulation.
    (g) Expedited processing--(1) Criteria. A request for expedited 
processing of a request for records shall be granted when the requester 
demonstrates compelling need. For purposes of this paragraph, 
``compelling need'' exists if:
    (i) Failure of the requester to obtain the records on an expedited 
basis could reasonably be expected to pose an imminent threat to the 
life or physical safety of an individual, or
    (ii) In the case of a request made by a person primarily engaged in 
disseminating information, there is an urgency to inform the public 
concerning actual or alleged Federal government activity.
    (2) Request. A request for expedited processing shall be directed 
in writing to the appropriate Freedom of Information Act RSC. The 
requester must provide information in sufficient detail to demonstrate 
compelling need for the records and certify this statement to be true 
and correct to the best of the requester's knowledge and belief. The 
custodian may waive the formality of certification when deemed 
appropriate.
    (3) Determination. The records custodian shall make a determination 
of whether to provide expedited processing and notify the requester 
within 10 days after the date of the request for expedited processing. 
If the request is granted, the records custodian shall process the 
request for records as soon as practicable. If the request for 
expedited processing is denied, the written response will include the 
procedures at paragraph (d) of this section for appealing the denial.


Sec.  265.8  Business information; procedures for predisclosure 
notification to submitters.

    (a) In general. This section provides a procedure by which persons 
submitting business information to the Postal Service can request that 
the information not be disclosed pursuant to a request under the 
Freedom of Information Act. This section does not affect the Postal 
Service's right, authority, or obligation to disclose information in 
any other context, nor is it intended to create any right or benefit, 
substantive or procedural, enforceable at law by a party against the 
Postal Service, its officers, or any person. Existing rights of 
submitters are also unaffected. For purposes of this section, the 
following definitions apply:
    (1) Business information means commercial or financial information 
provided directly or indirectly to the Postal Service by a submitter 
that arguably is protected from disclosure under Exemption 4 of the 
Freedom of Information Act, 5 U.S.C. 552(b)(4), which is restated in 
Sec.  265.6(b)(2).
    (2) Submitter means any person or entity who provides business

[[Page 79746]]

information, directly or indirectly, to the Postal Service. The term 
includes, but is not limited to, corporations, state governments, and 
foreign governments.
    (b) Notice to submitters. (1) The custodian shall, to the extent 
permitted by law, provide a submitter with prompt written notice of a 
Freedom of Information Act request for the submitter's business 
information whenever required under paragraph (c) of this section, 
except as provided in paragraph (d) of this section, in order to afford 
the submitter an opportunity to object to disclosure pursuant to 
paragraph (f) of this section. Such written notice shall either 
describe the exact nature of the business information requested or 
provide copies of the records or portions of records containing the 
business information. In the case of an administrative appeal, the 
General Counsel shall be responsible for providing such notification as 
may be appropriate under this section.
    (2) When notice is given to a submitter under paragraph (b)(1) of 
this section, the requester also shall be notified that notice and an 
opportunity to object are being provided to the submitter pursuant to 
this section.
    (c) When notice is required. Notice shall be given to a submitter 
whenever:
    (1) The submitter has in good faith designated the information as 
information deemed protected from disclosure under Exemption 4, in 
accordance with the procedure described in paragraph (e) of this 
section, or
    (2) In the opinion of the custodian, or of the General Counsel, in 
the case of an administrative appeal, it is likely that disclosure of 
the information would result in competitive harm to the submitter.
    (d) Exceptions to notice requirements. The notice requirements of 
paragraph (b) of this section shall not apply if:
    (1) The Postal Service determines without reference to the 
submitter that the information will not be disclosed.
    (2) The information lawfully has been published or has been 
officially made available to the public.
    (3) Disclosure of the information is required by law (other than 
the Freedom of Information Act, 5 U.S.C. 552).
    (4) Disclosure of the particular kind of information is required by 
a Postal Service regulation, except that, in such case, advance written 
notice of a decision to disclose shall be provided to the submitter if 
the submitter had provided written justification for protection of the 
information under Exemption 4 at the time of submission or a reasonable 
time thereafter.
    (e) Procedure for designating business information at the time of 
its submission. (1) Submitters of business information shall use good-
faith efforts to designate, by appropriate markings, either at the time 
of submission or at a reasonable time thereafter, those portions of 
their submissions which they deem to be protected from disclosure under 
Exemption 4. Each record, or portion thereof, to be so designated, 
shall be clearly marked with a suitable legend such as Privileged 
Business Information--Do Not Release. When the designated records 
contain some information for which an exemption is not claimed, the 
submitter shall clearly indicate the portions for which protection is 
sought.
    (2) At the time a designation is made pursuant to paragraph (e)(1) 
of this section, the submitter shall furnish the Postal Service with 
the name, title, address, and telephone number of the person or persons 
to be contacted for the purpose of the notification described in 
paragraph (b) of this section.
    (3) Submitters who provide to a postal facility business 
information on a recurring basis and in substantially identical form 
may use the following simplified process: The first submission will 
provide in full the information required in paragraphs (e)(1) and (2) 
of this section; shall identify the type of information, e.g., PS Form 
3602, to which it is intended to apply; and shall state that it is 
intended to serve as a designation for all of the information of this 
type that is submitted to the particular facility. Thereafter when 
providing this type of information, the submitter need only mark a 
submission with a reference to the letter designation. By written 
agreement with the head of the facility, even this marking may be 
dispensed with if it is not necessary to alert postal employees at that 
facility of the claim of exemption.
    (4) A designation made pursuant to paragraph (e) of this section 
shall be deemed to have expired 10 years after the date the records 
were submitted unless the submitter requests, and provides reasonable 
justification for, a designation period of greater duration.
    (5) The Postal Service will not determine the validity of any 
request for confidential treatment until a request for disclosure of 
the information is received.
    (f) Opportunity to object to disclosure. Through the notice 
described in paragraph (b) of this section, the submitter shall be 
afforded a reasonable period of time within which to provide the Postal 
Service with a detailed written statement of any objection to 
disclosure. Such statement shall specify all grounds for withholding 
any of the information under any exemption of the Freedom of 
Information Act and, in the case of Exemption 4, shall demonstrate why 
the information is contended to be a trade secret or commercial or 
financial information that is privileged or confidential. Whenever 
possible, the submitter's claim of confidentiality should be supported 
by a statement or certification by an officer or authorized 
representative of the submitter that the information in question is in 
fact confidential, has not been disclosed to the public by the 
submitter, and is not routinely available to the public from other 
sources. Information provided by a submitter pursuant to this paragraph 
may itself be subject to disclosure under the FOIA.
    (g) Determination that confidential treatment is warranted. If the 
custodian determines that confidential treatment is warranted for any 
part of the requested records, he shall inform the requester in writing 
in accordance with the procedures set out in Sec.  265.7(d) of this 
chapter, and shall advise the requester of the right to appeal. A copy 
of the letter of denial shall also be provided to the submitter of the 
records in any case in which the submitter had been notified of the 
request pursuant to paragraph (c) of this section.
    (h) Notice of intent to disclose. The custodian, in the case of an 
initial request, or the General Counsel, in the case of an appeal, 
shall consider carefully a submitter's objections and specific grounds 
for nondisclosure prior to determining whether to disclose business 
information. In the event of a decision to disclose business 
information over the objection of the submitter, the submitter shall be 
furnished a written notice which shall include the following:
    (1) A description of the business information to be disclosed.
    (2) A statement of the reasons for which the submitter's disclosure 
objections were not sustained.
    (3) The specific date upon which disclosure will occur. Such notice 
of intent to disclose shall be forwarded to the submitter a reasonable 
number of days prior to the specified disclosure date, and the 
requester shall be notified likewise.
    (i) Notice of FOIA lawsuit. Whenever a requester brings suit 
seeking to compel disclosure of business information, the General 
Counsel shall promptly notify the submitter.


Sec.  265.9  Schedule of fees.

    (a) Policy. The purpose of this section is to establish fair and 
equitable fees to

[[Page 79747]]

permit the furnishing of records to members of the public while 
recovering the full allowable direct costs incurred by the Postal 
Service. The Postal Service will use the most efficient and least 
costly methods available to it when complying with requests for 
records.
    (b) Standard rates--(1) Record retrieval. Searches may be done 
manually or by computer using existing programming.
    (i) Manual search. The fee for a manual search is $32 per hour 
(fractions of an hour are rounded to the nearest half hour).
    (ii) Computer search. The fee for retrieving data by computer is 
the actual direct cost of the retrieval, including computer search 
time, and personnel cost in effect at the time that the retrieval 
services are performed. The fees are subject to periodic revision. A 
copy of the fees are included within the public index. (See appendix 
A.)
    (2) Duplication. (i) Except where otherwise specifically provided 
in postal regulations, the fee for duplicating any record or 
publication is $0.15 per page.
    (ii) The Postal Service may at its discretion make coin-operated 
copy machines available at any location, or otherwise give the 
requester the opportunity to make copies of Postal Service records at 
his own expense. Unless authorized by the Records Office, however, no 
off-site copying shall be permitted of records which, if lost, could 
not be replaced without inconvenience to the Postal Service.
    (iii) The Postal Service will normally furnish only one copy of any 
record. If duplicate copies are furnished at the request of the 
requester, the $0.15 per-page fee shall be charged for each copy of 
each duplicate page without regard to whether the requester is eligible 
for free copies pursuant to paragraph (c) or (g) of this section. At 
his or her discretion, when it is reasonably necessary because of a 
lack of adequate copying facilities or other circumstances, the 
custodian may make the requested record available to the requester for 
inspection under reasonable conditions and need not furnish a copy 
thereof.
    (3) Review. The fee for reviewing records located in response to a 
commercial use request is $32 per hour (fractions of an hour are 
rounded to the nearest half hour). Only requesters who are seeking 
documents for commercial use may be charged for review. ``Review'' is 
defined in paragraph (h)(4) of this section; ``commercial use'' is 
defined in paragraph (h)(5) of this section.
    (4) Micrographics. Paragraphs (b)(1), (2), and (3) of this section 
also apply to information stored within micrographic systems.
    (c) Four categories of fees to be charged. For the purpose of 
assessing fees under this section, a requester shall be classified into 
one of four categories: commercial use requesters; educational and 
noncommercial scientific institutions; representatives of the news 
media; and all other requesters. Requesters in each category must 
reasonably describe the records sought. Fees shall be charged 
requesters in each category in accordance with the following:
    (1) Commercial use requesters. Fees shall be charged to recover the 
full direct costs of search, review, and duplication in accordance with 
the rates prescribed in paragraphs (b)(1) through (3) of this section, 
subject only to the general waiver set out in paragraph (g)(1) of this 
section. The term ``commercial use request'' is defined in paragraph 
(h)(5).
    (2) Educational and noncommercial scientific institutions. Fees 
shall be charged only for duplication in accordance with paragraph 
(b)(2) of this section, except that the first 100 pages furnished in 
response to a particular request shall be furnished without charge. 
(See also the general waiver provision in paragraph (g)(1) of this 
section.) To be eligible for the reduction of fees applicable to this 
category, the requester must show that the request is being made as 
authorized by and under the auspices of a qualifying institution and 
that the records are not sought for a commercial use, but are sought in 
furtherance of scholarly or scientific research. These institutions are 
defined in paragraphs (h)(6) and (h)(7) of this section, respectively.
    (3) Representatives of the news media. Fees shall be charged only 
for duplication in accordance with paragraph (b)(2) of this section, 
except that the first 100 pages furnished in response to a particular 
request shall be furnished without charge. (See also the general waiver 
provision in paragraph (g)(1) of this section.) To be eligible for the 
reduction of fees applicable to this category, the requester must meet 
the criteria in paragraph (h)(8) of this section, and the request must 
not be made for a commercial use.
    (4) All other requesters. Fees shall be charged for search and 
duplication in accordance with paragraphs (b)(1) and (2) of this 
section, except that the first 100 pages of duplication and the first 
two hours of search time shall be furnished without charge. (See also 
paragraphs (g)(1) and (2) of this section.)
    (d) Aggregating requests. When the custodian reasonably believes 
that a requester is attempting to break a request down into a series of 
requests in order to evade the assessment of fees, the custodian may 
aggregate the requests and charge accordingly. The custodian shall not 
aggregate multiple requests when the requests pertain to unrelated 
subject matter. Requests made by more than one requester may be 
aggregated only when the custodian has a concrete basis on which to 
conclude that the requesters are acting in concert specifically to 
avoid payment of fees.
    (e) Other costs--(1) Publications. Publications and other printed 
materials may, to the extent that they are available in sufficient 
quantity, be made available at the established price, if any, or at 
cost to the Postal Service. Fees established for printed materials 
pursuant to laws, other than the Freedom of Information Act, that 
specifically provide for the setting of fees for particular types of 
records are not subject to waiver or reduction under this section.
    (2) Other charges. When a response to a request requires services 
or materials other than the common one listed in paragraph (b) of this 
section, the direct cost of such services or materials to the Postal 
Service may be charged, but only if the requester has been notified of 
the nature and estimated amount of such cost before it is incurred.
    (f) Advance notice and payment of fees--(1) Liability and payment. 
The requester is responsible, subject to limitations on liability 
provided by this section, for the payment of all fees for services 
resulting from his request, even if responsive records are not located 
or are determined to be exempt from disclosure. Checks in payment of 
fees should be made payable to ``U.S. Postal Service.''
    (2) Advance notice. To protect members of the public from 
unwittingly incurring liability for unexpectedly large fees, the 
custodian shall notify the requester if the estimated cost is expected 
to exceed $25. When search fees are expected to exceed $25, but it 
cannot be determined in advance whether any records will be located or 
made available, the custodian shall notify the requester of the 
estimated amount and of the responsibility to pay search fees even 
though records are not located or are determined to be exempt from 
disclosure. The notification shall be transmitted as soon as possible 
after physical receipt of the request, giving the best estimate then 
available. It shall include a brief explanatory statement of the nature 
and extent of the services upon which the estimate is based and shall 
offer the requester an opportunity to confer with the custodian or his 
representative in an attempt to

[[Page 79748]]

reformulate the request so as to meet his needs at lower cost. The time 
period for responding to the request shall not run during the interval 
between the date such notification is transmitted and the date of 
receipt of the requester's agreement to bear the cost. No notification 
is required if the request specifically states that whatever cost is 
involved is acceptable or is acceptable up to a specified amount that 
covers estimated costs or if payment of all fees in excess of $25 has 
been waived.
    (3) Advance payment. Advance payment of fees shall not be required, 
except:
    (i) When it is estimated that the fees chargeable under this 
section are likely to exceed $250. If the requester has a history of 
prompt payment of FOIA fees, the custodian shall notify the requester 
of the likely cost and obtain satisfactory assurance of full payment 
before commencing work on the request. If the requester has no history 
of payment, the custodian may require an advance payment of an amount 
up to the full estimated charge before commencing work on the request.
    (ii) When a requester has previously failed to pay a fee in a 
timely fashion (i.e., within 30 days of the date of the billing), the 
requester shall be required to pay the full amount owed, and to make an 
advance payment of the full amount of the estimated fee before 
processing will begin on a new or pending request.
    (iii) When advance payment is required under paragraphs (f)(3)(i) 
or (ii) of this section, the time periods for responding to the initial 
request or to an appeal shall not run during the interval between the 
date that notice of the requirement is transmitted and the date that 
the required payment or assurance of payment is received.
    (g) Restrictions on assessing fees--(1) General waiver. No fees 
shall be charged to any requester if they would amount, in the 
aggregate, for a request or a series of related requests, to $10 or 
less. When the fees for the first 100 pages or the first 2 hours of 
search time are excludable under paragraph (c) of this section, 
additional costs will not be assessed unless they exceed $10.
    (2) Certain fees not charged--(i) All requests except those for 
commercial use. Fees shall not be charged for the first 100 pages of 
duplication, and the first 2 hours of search time except when the 
request is for a commercial use as defined in paragraph (h)(5) of this 
section. When search is done by computer, the fees to be excluded for 
the first 2 hours of search time shall be determined on the basis of 
fee for computer searches then in effect. (See appendix A.) Assessment 
of search fees will begin at the point when the cost of the search 
(including the cost of personnel and computer processing time) reaches 
the equivalent dollar amount of personnel fees for 2 hours.
    (ii) Requests of educational and noncommercial scientific 
institutions and representatives of the news media. Fees shall not be 
charged for time spent searching for records in response to requests 
submitted by educational and noncommercial scientific institutions or 
representatives of the news media.
    (3) Public interest waiver. The custodian shall waive a fee, in 
whole or in part, and any requirement for advance payment of such a 
fee, when he determines that furnishing the records is deemed to be in 
the public interest because it is likely to contribute significantly to 
public understanding of the operations or activities of the Federal 
government, and is not primarily in the commercial interest of the 
requester. This waiver may be granted notwithstanding the applicability 
of other fee reductions prescribed by this section for requesters in 
certain categories. In determining whether disclosure is in the public 
interest for the purposes of this waiver, the following factors may be 
considered:
    (i) The relation of the records to the operations or activities of 
the Postal Service.
    (ii) The informative value of the information to be disclosed.
    (iii) Any contribution to an understanding of the subject by the 
general public likely to result from disclosure.
    (iv) The significance of that contribution to the public 
understanding of the subject.
    (v) The nature of the requester's personal interest, if any, in the 
disclosure requested.
    (vi) Whether the disclosure would be primarily in the requester's 
commercial interest.
    (4) Waiver by officer. Any officer of the Postal Service, as 
defined in Sec.  221.4, his designee, or the Manager, Records Office 
may waive in whole or in part any fee required by this part or the 
requirement for advance payment of any fee.
    (5) Fee for other services. Waivers do not apply for fees for 
address correction services performed in accordance with R900 of the 
DMM.
    (h) Definitions. As used in this section, the term:
    (1) Direct costs include expenditures actually incurred in 
searching for and duplicating (and in the case of commercial 
requesters, reviewing) documents to respond to a FOIA request. Direct 
costs include, for example, the salary of the employee performing work 
(the basic rate of pay for the employee plus a factor to cover 
benefits) and the cost of operating duplicating machinery. Not included 
in direct costs are overhead expenses such as costs of space and 
heating or lighting the facility in which the records are stored.
    (2) Search includes all time spent looking for material that is 
responsive to a request, including page-by-page or line-by-line 
identification of material within documents. Searches may be done 
manually or by computer using existing programming. A line-by-line 
search will be conducted only when necessary to determine whether the 
document contains responsive information and will not be employed in 
those instances in which duplication of the entire document would be 
the less expensive and quicker method of complying with a request. 
Search does not include review of material to determine whether the 
material is exempt from disclosure (see paragraph (h)(4) of this 
section).
    (3) Duplication refers to the process of making a copy of a 
document necessary to respond to a FOIA request. Such copies can take 
the form of paper copy, microform, audio-visual materials, or machine 
readable documentation (e.g., magnetic tape or disk), among others. The 
copy provided must be in a form that is reasonably usable by 
requesters.
    (4) Review refers to the process of examining documents located in 
response to a request that is for a commercial use (see paragraph 
(h)(5) of this section) to determine whether any portion of any 
document located is exempt from mandatory disclosure. It also includes 
processing any documents for disclosure, e.g., doing all that is 
necessary to excise them and otherwise prepare them for release. Review 
does not include time spent resolving general legal or policy issues 
regarding the application of exemptions. Charges may be assessed only 
for the initial review, i.e., the first time the applicability of a 
specific exemption is analyzed. Costs for a subsequent review are 
properly assessable only when a record or portion of a record withheld 
solely on the basis of an exemption later determined not to apply must 
be reviewed again to determine the applicability of other exemptions 
not previously considered.
    (5) Commercial use request refers to a request from or on behalf of 
one who seeks information for a use or purpose that furthers the 
commercial, trade, or profit interests of the requester or the person 
on whose behalf the request is

[[Page 79749]]

made. In determining whether a request properly belongs in this 
category, the Postal Service will look to the use to which the 
requester will put the documents requested. If the use is not clear 
from the request itself, or if there is reasonable cause to doubt the 
requester's stated use, the custodian shall seek additional 
clarification from the requester before assigning the request to this 
category.
    (6) Educational institution refers to a pre-school, a public or 
private elementary or secondary school, an institution of graduate 
higher education, an institution of undergraduate higher education, an 
institution of professional education, and an institution of vocational 
education, which operates a program or programs of scholarly research.
    (7) Noncommercial scientific institution refers to an institution 
that is not operated on a ``commercial'' basis as that term is defined 
in paragraph (h)(5) of this section, and that is operated solely for 
the purpose of conducting scientific research the results of which are 
not intended to promote any particular product or industry.
    (8) Representative of the news media refers to any person actively 
gathering news for an entity that is organized and operated to publish 
or broadcast news to the public. The term ``news'' means information 
that is about current events or that would be of current interest to 
the public. Requests by news organizations for information that will be 
used for the furtherance of the organization's commercial interests, 
rather than for the dissemination of news to the public, shall be 
considered commercial use requests. Examples of news media entities 
include television or radio stations broadcasting to the public at 
large, and publishers of periodicals (but only in those instances when 
they can qualify as disseminators of ``news'') who make their products 
available for purchase or subscription by the general public. These 
examples are not intended to be all-inclusive. A ``freelance'' 
journalist will be regarded as a representative of the news media if he 
can demonstrate a solid basis for expecting publication through a news 
organization, even though not actually employed by it. This may be 
demonstrated either by a publication contract with the news 
organization or by the past publication record of the requester.


Sec.  265.10  Annual report.

    A report concerning the administration of the Freedom of 
Information Act and this part will be submitted to the Attorney General 
of the United States on or before February 1 of each year. Data for the 
report will be collected on the basis of fiscal year that begins on 
October 1 of each year. The attorney general, in consultation with the 
director, Office of Management and Budget, will prescribe the form and 
content of the report. The report will be made available to the public 
at the Headquarters library and on the Postal Service's Web site at 
http://www.usps.com/foia.


Sec.  265.11  Compliance with subpoena duces tecum, court orders, and 
summonses.

    (a) Compliance with subpoena duces tecum. (1) Except as required by 
part 262, produce other records of the Postal Service only in 
compliance with a subpoena duces tecum or appropriate court order.
    (2) Time, leave, and payroll records of postal employees are 
subject to production when a subpoena duces tecum or appropriate court 
order has been properly served. The custodian of the records may 
designate a postal employee to present the records. The presentation by 
a designee rather than the employee named in the subpoena or court 
order must meet with the approval of the attorneys for each side. In 
addition, such records may be released if authorized in writing by the 
employee.
    (3) If the subpoena involves a job-connected injury, the records 
are under the exclusive jurisdiction of the Office of Workers' 
Compensation Programs, Department of Labor. Requests for authorization 
to produce these records shall be addressed to: Office of Workers' 
Compensation Programs, U.S. Department of Labor, Washington, DC 20210. 
Also notify the attorney responsible for the issuance of the subpoena 
or court order.
    (4) Employee medical records are primarily under the exclusive 
jurisdiction of the U.S. Civil Service Commission. The Commission has 
delegated authority to the Postal Service and to the Commission's 
Regional Directors to release medical information, in response to 
proper requests and upon competent medical advice, in accordance with 
the following criteria:
    (i) Except in response to a subpoena or court order, do not release 
any medical information about an employee to any non-Federal entity or 
individual without authorization from the employee.
    (ii) With authorization from the employee, the responding official 
will respond as follows to a request from a non-Federal source for 
medical information:
    (A) If, in the opinion of a Federal medical officer, the medical 
information indicates the existence of a malignancy, a mental 
condition, or other condition about which a prudent physician would 
hesitate to inform a person suffering from such a condition as to its 
exact nature and probable outcome, do not release the medical 
information to the employee or to any individual designated by him, 
except to a physician, designated by the employee in writing. If a 
subpoena or court order was issued, the responding official shall 
caution the moving party as to the possible dangers involved if the 
medical information is divulged.
    (B) If, in the opinion of a Federal medical officer, the medical 
information does not indicate the presence of any condition which would 
cause a prudent physician to hesitate to inform a person of the exact 
nature and probable outcome of his condition, release it in response to 
a subpoena or court order, or to the employee or to any person, firm, 
or organization he authorizes in writing.
    (C) If a Federal medical officer is not available, refer the 
request to the Civil Service Commission regional office with the 
medical certificates or other medical reports concerned.
    (5) Do not release any records containing information as to the 
employee's security or loyalty.
    (6) Honor subpoenas or court orders only when disclosure is 
authorized.
    (7) When authorized to comply with a subpoena duces tecum, do not 
leave the original records with the court.
    (b) [Reserved]


Sec.  265.12  Demands for testimony or records in certain legal 
proceedings.

    (a) Scope and applicability of this section. (1) This section 
establishes procedures to be followed if the Postal Service or any 
Postal Service employee receives a demand for testimony concerning or 
disclosure of:
    (i) Records contained in the files of the Postal Service;
    (ii) Information relating to records contained in the files of the 
Postal Service; or
    (iii) Information or records acquired or produced by the employee 
in the course of his or her official duties or because of the 
employee's official status.
    (2) This section does not create any right or benefit, substantive 
or procedural, enforceable by any person against the Postal Service.
    (3) This section does not apply to any of the following:
    (i) Any legal proceeding in which the United States is a party;
    (ii) A demand for testimony or records made by either House of 
Congress or, to

[[Page 79750]]

the extent of matter within its jurisdiction, any committee or 
subcommittee of Congress;
    (iii) An appearance by an employee in his or her private capacity 
in a legal proceeding in which the employee's testimony does not relate 
to the employee's official duties or the functions of the Postal 
Service; or
    (iv) A demand for testimony or records submitted to the Postal 
Inspection Service (a demand for Inspection Service records or 
testimony will be handled in accordance with rules in Sec.  265.11).
    (4) This section does not exempt a request from applicable 
confidentiality requirements, including the requirements of the Privacy 
Act. 5 U.S.C. 552a.
    (b) Definitions. The following definitions apply to this section:
    (1) Adjudicative authority includes, but is not limited to, the 
following:
    (i) A court of law or other judicial forums, whether local, state, 
or Federal; and
    (ii) Mediation, arbitration, or other forums for dispute 
resolution.
    (2) Demand includes a subpoena, subpoena duces tecum, request, 
order, or other notice for testimony or records arising in a legal 
proceeding.
    (3) Employee means a current employee or official of the Postal 
Service.
    (4) General Counsel means the General Counsel of the U.S. Postal 
Service, the Chief Field Counsels, the Field Managing Counsels, or an 
employee of the Postal Service acting for the General Counsel under a 
delegation of authority.
    (5) Legal proceeding means:
    (i) A proceeding before an adjudicative authority;
    (ii) A legislative proceeding, except for a proceeding before 
either House of Congress or before any committee or subcommittee of 
Congress; or
    (iii) An administrative proceeding.
    (6) Private litigation means a legal proceeding to which the United 
States is not a party.
    (7) Records custodian means the employee who maintains a requested 
record. For assistance in identifying the custodian of a specific 
record, contact the Manager, Records Office, U.S. Postal Service, 475 
L'Enfant Plaza, S.W., Washington, DC 20260, telephone (202) 268-2608.
    (8) Testimony means statements made in connection with a legal 
proceeding, including but not limited to statements in court or other 
forums, depositions, declarations, affidavits, or responses to 
interrogatories.
    (9) United States means the Federal government of the United States 
and any of its agencies, establishments, or instrumentalities, 
including the United States Postal Service.
    (c) Requirements for submitting a demand for testimony or records. 
(1) Ordinarily, a party seeking to obtain records from the Postal 
Service should submit a request in accordance with the provisions of 
the Freedom of Information Act (FOIA), 5 U.S.C. 552, and the Postal 
Service's regulations implementing the FOIA at 39 CFR 265.1 through 
265.9 or the Privacy Act, 5 U.S.C. 552a and the Postal Service's 
regulations implementing the Privacy Act at 39 CFR 266.1 through 266.9.
    (2) A demand for testimony or records issued pursuant to the rules 
governing the legal proceeding in which the demand arises must:
    (i) Be in writing;
    (ii) Identify the requested record and/or state the nature of the 
requested testimony, describe the relevance of the record or testimony 
to the proceeding, and why the information sought is unavailable by any 
other means; and
    (iii) If testimony is requested, contain a summary of the requested 
testimony and a showing that no document could be provided and used in 
lieu of testimony.
    (3) Procedures for service of demand are made as follows:
    (i) Service of a demand for testimony or records (including, but 
not limited to, personnel or payroll information) relating to a current 
or former employee must be made in accordance with the applicable rules 
of civil procedure on the employee whose testimony is requested or the 
records custodian. The requester also shall deliver a copy of the 
demand to the District Manager, Customer Services and Sales, for all 
current employees whose work location is within the geographic 
boundaries of the manager's district, and any former employee whose 
last position was within the geographic boundaries of the manager's 
district. A demand for testimony or records must be received by the 
employee whose testimony is requested and the appropriate District 
Manager, Customer Services and Sales, at least ten (10) working days 
before the date the testimony or records are needed.
    (ii) Service of a demand for testimony or records other than those 
described in paragraph (c)(3)(i) of this section must be made in 
accordance with the applicable rules of civil procedure on the employee 
whose testimony is requested or the records custodian. The requester 
also shall deliver a copy of the demand to the General Counsel, U.S. 
Postal Service, 475 L'Enfant Plaza, SW., Washington DC 20260, or the 
Field Managing Counsel. A demand for testimony or records must be 
received by the employee and the General Counsel or Field Managing 
Counsel at least ten (10) working days before the date testimony or 
records are needed.
    (d) Procedures followed in response to a demand for testimony or 
records. (1) After an employee receives a demand for testimony or 
records, the employee shall immediately notify the General Counsel or 
Field Managing Counsel and request instructions.
    (2) An employee may not give testimony or produce records without 
the prior authorization of the General Counsel.
    (3)(i) The General Counsel may allow an employee to testify or 
produce records if the General Counsel determines that granting 
permission:
    (A) Would be appropriate under the rules of procedure governing the 
matter in which the demand arises and other applicable laws, 
privileges, rules, authority, and regulations; and
    (B) Would not be contrary to the interest of the United States. The 
interest of the United States includes, but is not limited to, 
furthering a public interest of the Postal Service and protecting the 
human and financial resources of the United States.
    (ii) An employee's testimony shall be limited to the information 
set forth in the statement described at paragraph (c)(2) of this 
section or to such portions thereof as the General Counsel determines 
are not subject to objection. An employee's testimony shall be limited 
to facts within the personal knowledge of the employee. A Postal 
Service employee authorized to give testimony under this rule is 
prohibited from giving expert or opinion testimony, answering 
hypothetical or speculative questions, or giving testimony with respect 
to privileged subject matter. The General Counsel may waive the 
prohibition of expert testimony under this paragraph only upon 
application and showing of exceptional circumstances and the request 
substantially meets the requirements of this section.
    (4) The General Counsel may establish conditions under which the 
employee may testify. If the General Counsel authorizes the testimony 
of an employee, the party seeking testimony shall make arrangements for 
the taking of testimony by those methods that, in the General Counsel's 
view, will least disrupt the employee's official duties. For example, 
at the General Counsel's discretion, testimony may be provided by 
affidavits, answers to interrogatories, written depositions, or 
depositions

[[Page 79751]]

transcribed, recorded, or preserved by any other means allowable by 
law.
    (5) If a response to a demand for testimony or records is required 
before the General Counsel determines whether to allow an employee to 
testify, the employee or counsel for the employee shall do the 
following:
    (i) Inform the court or other authority of the regulations in this 
section; and
    (ii) Request that the demand be stayed pending the employee's 
receipt of the General Counsel's instructions.
    (6) If the court or other authority declines the request for a 
stay, or rules that the employee must comply with the demand regardless 
of the General Counsel's instructions, the employee or counsel for the 
employee shall respectfully decline to comply with the demand, citing 
United States ex rel. Touhy v. Ragen, 340 U.S. 462 (1951), and the 
regulations in this section.
    (7) The General Counsel may request the assistance of the 
Department of Justice or a U.S. Attorney where necessary to represent 
the interests of the Postal Service and the employee.
    (8) At his or her discretion, the General Counsel may grant a 
waiver of any procedure described by this section, where waiver is 
considered necessary to promote a significant interest of the United 
States or for other good cause.
    (9) If it otherwise is permissible, the records custodian may 
authenticate, upon the request of the party seeking disclosure, copies 
of the records. No employee of the Postal Service shall respond in 
strict compliance with the terms of a subpoena duces tecum unless 
specifically authorized by the General Counsel.
    (e) Postal Service employees as expert witnesses. No Postal Service 
employee may testify as an expert or opinion witness, with regard to 
any matter arising out of the employee's official duties or the 
functions of the Postal Service, for any party other than the United 
States, except that in extraordinary circumstances, the General Counsel 
may approve such expert testimony in private litigation. A Postal 
Service employee may not testify as such an expert witness without the 
express authorization of the General Counsel. A litigant must obtain 
authorization of the General Counsel before designating a Postal 
Service employee as an expert witness.
    (f) Substitution of Postal Service employees. Although a demand for 
testimony may be directed to a named Postal Service employee, the 
General Counsel, where appropriate, may designate another Postal 
Service employee to give testimony. Upon request and for good cause 
shown (for example, when a particular Postal Service employee has 
direct knowledge of a material fact not known to the substitute 
employee designated by the Postal Service), the General Counsel may 
permit testimony by a named Postal Service employee.
    (g) Fees and costs. (1) The Postal Service may charge fees, not to 
exceed actual costs, to private litigants seeking testimony or records 
by request or demand. The fees, which are to be calculated to reimburse 
fully the Postal Service for processing the demand and providing the 
witness or records, may include, among others:
    (i) Costs of time spent by employees, including attorneys, of the 
Postal Service to process and respond to the demand;
    (ii) Costs of attendance of the employee and agency attorney at any 
deposition, hearing, or trial;
    (iii) Travel costs of the employee and agency attorney;
    (iv) Costs of materials and equipment used to search for, process, 
and make available information.
    (2) All costs for employee time shall be calculated on the hourly 
pay of the employee (including all pay, allowance, and benefits) and 
shall include the hourly fee for each hour, or portion of each hour, 
when the employee is in travel, in attendance at a deposition, hearing, 
or trial, or is processing or responding to a request or demand.
    (3) At the discretion of the Postal Service, where appropriate, 
costs may be estimated and collected before testimony is given.
    (h) Acceptance of service. This section does not in any way 
abrogate or modify the requirements of the Federal Rules of Civil 
Procedure (28 U.S.C. Appendix) regarding service of process.


Sec.  265.13  Compliance with subpoenas, summonses, and court orders by 
postal employees within the Inspection Service where the Postal 
Service, the United States, or any other Federal agency is not a party.

    (a) Applicability of this section. The rules in this section apply 
to all Federal, state, and local court proceedings, as well as 
administrative and legislative proceedings, other than:
    (1) Proceedings where the United States, the Postal Service, or any 
other Federal agency is a party;
    (2) Congressional requests or subpoenas for testimony or documents;
    (3) Consultative services and technical assistance rendered by the 
Inspection Service in executing its normal functions;
    (4) Employees serving as expert witnesses in connection with 
professional and consultative services under 5 CFR part 7001, provided 
that employees acting in this capacity must state for the record that 
their testimony reflects their personal opinions and should not be 
viewed as the official position of the Postal Service;
    (5) Employees making appearances in their private capacities in 
proceedings that do not relate to the Postal Service (e.g., cases 
arising from traffic accidents, domestic relations) and do not involve 
professional or consultative services; and
    (6) When in the opinion of the Counsel or the Counsel's designee, 
Office of the Chief Postal Inspector, it has been determined that it is 
in the best interest of the Inspection Service or in the public 
interest.
    (b) Purpose and scope. The provisions in this section limit the 
participation of postal employees within or assigned to the Inspection 
Service, in private litigation, and other proceedings in which the 
Postal Service, the United States, or any other Federal agency is not a 
party. The rules are intended to promote the careful supervision of 
Inspection Service resources and to reduce the risk of inappropriate 
disclosures that might affect postal operations.
    (c) Definitions. For the purposes of this section:
    (1) Authorizing official is the person responsible for giving the 
authorization for release of documents or permission to testify.
    (2) Case or matter means any civil proceeding before a court of 
law, administrative board, hearing officer, or other body conducting a 
judicial or administrative proceeding in which the United States, the 
Postal Service, or another Federal agency is not a named party.
    (3) Demand includes any request, order, or subpoena for testimony 
or the production of documents.
    (4) Document means all records, papers, or official files, 
including, but not limited to, official letters, telegrams, memoranda, 
reports, studies, calendar and diary entries, graphs, notes, charts, 
tabulations, data analyses, statistical or information accumulations, 
records of meetings and conversations, film impressions, magnetic 
tapes, computer discs, and sound or mechanical reproductions.
    (5) Employee or Inspection Service employee, for the purpose of 
this section only, refers to a Postal Service employee currently or 
formerly assigned to the Postal Inspection Service, student interns, 
contractors and employees of contractors who have access to Inspection 
Service information and records.

[[Page 79752]]

    (6) Inspection Service means the organizational unit within the 
Postal Service as outlined in Sec.  221.4 of this chapter.
    (7) Inspection Service Legal Counsel is an attorney authorized by 
the Chief Postal Inspector to give legal advice to members of the 
Inspection Service.
    (8) Inspection Service Manual is the directive containing the 
standard operating procedures for Postal Inspectors and certain 
Inspection Service employees.
    (9) Nonpublic includes any material or information not subject to 
mandatory public disclosure under Sec.  265.6(b).
    (10) Official case file means official documents that relate to a 
particular case or investigation. These documents may be kept at any 
location and do not necessarily have to be in the same location in 
order to constitute the file.
    (11) Postal Inspector reports include all written reports, letters, 
recordings, or other memorializations made in conjunction with the 
duties of a Postal Inspector.
    (12) Testify or testimony includes both in-person oral statements 
before any body conducting a judicial or administrative proceeding and 
statements made in depositions, answers to interrogatories, 
declarations, affidavits, or other similar documents.
    (13) Third-party action means an action, judicial, or 
administrative, in which the United States, the Postal Service, or any 
other Federal agency is not a named party.
    (d) Policy. (1) No current or former employee within the Inspection 
Service may testify or produce documents concerning information 
acquired in the course of employment or as a result of his or her 
relationship with the Postal Service in any proceeding to which this 
section applies (see paragraph (a) of this section), unless authorized 
to do so.
    Authorization will be provided by:
    (i) The Postal Inspector in Charge of the affected field Division, 
or designee, for Division personnel and records, after that official 
has determined through consultation with Inspection Service legal 
counsel that no legal objection, privilege, or exemption applies to 
such testimony or production of documents.
    (ii) The Chief Postal Inspector or designee for Headquarters 
employees and records, after that official has determined through 
consultation with Inspection Service legal counsel, that no legal 
objection, privilege, or exemption applies to such testimony or 
production of documents.
    (2) Consideration shall be given to:
    (i) Statutory restrictions, as well as any legal objection, 
exemption, or privilege that may apply;
    (ii) Relevant legal standards for disclosure of nonpublic 
information and documents;
    (iii) Inspection Service rules and regulations and the public 
interest;
    (iv) Conservation of employee time; and
    (v) Prevention of the expenditure of Postal Service resources for 
private purposes.
    (3) If additional information is necessary before a determination 
can be made, the authorizing official may, in coordination with 
Inspection Service legal counsel, request assistance from the 
Department of Justice.
    (e) Compliance with subpoena duces tecum. (1) Except as required by 
part 262 of this chapter, produce any other record of the Postal 
Service only in compliance with a subpoena duces tecum or appropriate 
court order.
    (2) Do not release any record containing information relating to an 
employee's security or loyalty.
    (3) Honor subpoenas and court orders only when disclosure is 
authorized.
    (4) When authorized to comply with a subpoena duces tecum or court 
order, do not leave the originals with the court.
    (5) Postal Inspector reports are considered to be confidential 
internal documents and shall not be released unless there is specific 
authorization by the Chief Postal Inspector or the Inspector in Charge 
of the affected field Division, after consulting with Inspection 
Service legal counsel.
    (6) The Inspection Service Manual and other operating instructions 
issued to Inspection Service employees are considered to be 
confidential and shall not be released unless there is specific 
authorization, after consultation with Inspection Service legal 
counsel. If the requested information relates to confidential 
investigative techniques, or release of the information would adversely 
affect the law enforcement mission of the Inspection Service, the 
subpoenaed official, through Inspection Service legal counsel, may 
request an in camera, ex parte conference to determine the necessity 
for the release of the information. The entire manual should not be 
given to any party.
    (7) Notes, memoranda, reports, transcriptions, whether written or 
recorded and made pursuant to an official investigation conducted by a 
member of the Inspection Service, are the property of the Inspection 
Service and are part of the official case file, whether stored with the 
official file.
    (f) Compliance with summonses and subpoenas ad testificandum. (1) 
If an Inspection Service employee is served with a third-party summons 
or a subpoena requiring an appearance in court, contact should be made 
with Inspection Service legal counsel to determine whether and which 
exemptions or restrictions apply to proposed testimony. Inspection 
Service employees are directed to comply with summonses, subpoenas, and 
court orders, as to appearance, but may not testify without 
authorization.
    (2) Postal Inspector reports or records will not be presented 
during testimony, in either state or Federal courts in which the United 
States, the Postal Service, or another Federal agency is not a party in 
interest, unless authorized by the Chief Postal Inspector or the Postal 
Inspector in Charge of the affected field Division, who will make the 
decision after consulting with Inspection Service legal counsel. If an 
attempt is made to compel production, through testimony, the employee 
is directed to decline to produce the information or matter and to 
state that it may be exempted and may not be disclosed or produced 
without the specific approval of the Chief Postal Inspector or the 
Postal Inspector in Charge of the affected field Division. The Postal 
Service will offer all possible assistance to the courts, but the 
question of disclosing information for which an exemption may be 
claimed is a matter of discretion that rests with the appropriate 
official. Paragraph (e) of this section covers the release of 
Inspection Service documents in cases where the Postal Service or the 
United States is not a party.
    (g) General procedures for obtaining Inspection Service documents 
and testimony from Inspection Service employees. (1) To facilitate the 
orderly response to demands for the testimony of Inspection Service 
employees and production of documents in cases where the United States, 
the Postal Service, or another Federal agency is not a party, all 
demands for the production of nonpublic documents or testimony of 
Inspection Service employees concerning matters relating to their 
official duties and not subject to the exemptions set forth in 
paragraph (a) of this section shall be in writing and conform to the 
requirements outlined in paragraphs (g)(2) and (3) of this section.
    (2) Before or simultaneously with service of a demand described in 
paragraph (g)(1) of this section, the requesting party shall serve on 
the Counsel, Office of the Chief Postal Inspector, 475 L'Enfant Plaza 
SW., Washington, DC 20260-2181, an affidavit or declaration containing 
the following information:
    (i) The title of the case and the forum where it will be heard;
    (ii) The party's interest in the case;
    (iii) The reasons for the demand;

[[Page 79753]]

    (iv) A showing that the requested information is available, by law, 
to a party outside the Postal Service;
    (v) If testimony is sought, a summary of the anticipated testimony;
    (vi) If testimony is sought, a showing that Inspection Service 
records could not be provided and used in place of the requested 
testimony;
    (vii) The intended use of the documents or testimony; and
    (viii) An affirmative statement that the documents or testimony is 
necessary for defending or prosecuting the case at issue.
    (3) The Counsel, Office of the Chief Postal Inspector, shall act as 
agent for the receipt of legal process for demands for production of 
records or testimony of Inspection Service employees where the United 
States, the Postal Service, or any other Federal agency is not a party. 
A subpoena for testimony or for the production of documents from an 
Inspection Service employee concerning official matters shall be served 
in accordance with the applicable rules of civil procedure. A copy of 
the subpoena and affidavit or declaration, if not previously furnished, 
shall also be sent to the Chief Postal Inspector or the appropriate 
Postal Inspector in Charge.
    (4) Any Inspection Service employee who is served with a demand 
shall promptly inform the Chief Postal Inspector, or the appropriate 
Postal Inspector in Charge, of the nature of the documents or testimony 
sought and all relevant facts and circumstances.
    (h) Authorization of testimony or production of documents. (1) The 
Chief Postal Inspector or the Postal Inspector in Charge of the 
affected field Division, after consulting with Inspection Service legal 
counsel, shall determine whether testimony or the production of 
documents will be authorized.
    (2) Before authorizing the requested testimony or the production of 
documents, the Chief Postal Inspector or the Postal Inspector in Charge 
of the affected field Division shall consider the following factors:
    (i) Statutory restrictions, as well as any legal objection, 
exemption, or privilege that may apply;
    (ii) Relevant legal standards for disclosure of nonpublic 
information and documents;
    (iii) Inspection Service rules and regulations and the public 
interest;
    (iv) Conservation of employee time; and
    (v) Prevention of expenditures of government time and resources 
solely for private purposes.
    (3) If, in the opinion of the authorizing official, the documents 
should not be released or testimony should not be furnished, that 
official's decision is final.
    (4) Inspection Service legal counsel may consult or negotiate with 
the party or the party's counsel seeking testimony or documents to 
refine and limit the demand, so that compliance is less burdensome, or 
obtain information necessary to make the determination whether the 
documents or testimony will be authorized. If the party or party's 
counsel seeking the documents or testimony fails to cooperate in good 
faith, preventing Inspection Service legal counsel from making an 
informed recommendation to the authorizing official, that failure may 
be presented to the court or other body conducting the proceeding as a 
basis for objection.
    (5) Permission to testify or to release documents in all cases will 
be limited to matters outlined in the affidavit or declaration 
described in paragraph (g)(2) of this section or to such parts as 
deemed appropriate by the authorizing official.
    (6) If the authorizing official allows the release of documents or 
testimony to be given by an employee, arrangements shall be made for 
the taking of testimony or receipt of documents by the least disruptive 
methods to the employee's official duties. Testimony may, for example, 
be provided by affidavits, answers to interrogatories, written 
depositions, or depositions transcribed, recorded, or preserved by any 
other means allowable by law.
    (i) While giving a deposition, the employee may, at the option of 
the authorizing official, be represented by Inspection Service legal 
counsel.
    (ii) While completing affidavits, or other written reports or at 
any time during the process of preparing for testimony or releasing 
documents, the employee may seek the assistance of Inspection Service 
legal counsel.
    (7) Absent written authorization from the authorizing official, the 
employee shall respectfully decline to produce the requested documents, 
testify, or, otherwise, disclose the requested information.
    (8) If the authorization is denied or not received by the return 
date, the employee, together with counsel, where appropriate, shall 
appear at the stated time and place, produce a copy of this section, 
and respectfully decline to testify or produce any document on the 
basis of the regulations in this section.
    (9) The employee shall appear as ordered by the subpoena, summons, 
or other appropriate court order, unless:
    (i) Legal counsel has advised the employee that an appearance is 
inappropriate, as in cases where the subpoena, summons, or other court 
order was not properly issued or served, has been withdrawn, discovery 
has been stayed; or
    (ii) Where the Postal Service will present a legal objection to 
furnishing the requested information or testimony.
    (i) Inspection Service employees as expert or opinion witnesses. No 
Inspection Service employee may testify as an expert or opinion 
witness, with regard to any matter arising out of the employee's duties 
or functions at the Postal Service, for any party other than the United 
States, except that in extraordinary circumstances, the Counsel, Office 
of the Chief Postal Inspector, may approve such testimony in private 
litigation. An Inspection Service employee may not testify as such an 
expert or opinion witness without the express authorization of the 
Counsel, Office of the Chief Postal Inspector. A litigant must first 
obtain authorization of the Counsel, Office of the Chief Postal 
Inspector, before designating an Inspection Service employee as an 
expert or opinion witness.
    (j) Postal liability. This section is intended to provide 
instructions to Inspection Service employees and does not create any 
right or benefit, substantive or procedural, enforceable by any party 
against the Postal Service.
    (k) Fees. (1) Unless determined by 28 U.S.C. 1821 or other 
applicable statute, the costs of providing testimony, including 
transcripts, shall be borne by the requesting party.
    (2) Unless limited by statute, such costs shall also include 
reimbursement to the Postal Service for the usual and ordinary expenses 
attendant upon the employee's absence from his or her official duties 
in connection with the case or matter, including the employee's salary 
and applicable overhead charges, and any necessary travel expenses as 
follows:
    (i) The Inspection Service is authorized to charge reasonable fees 
to parties demanding documents or information. Such fees, calculated to 
reimburse the Postal Service for the cost of responding to a demand, 
may include the costs of time expended by Inspection Service employees, 
including attorneys, to process and respond to the demand; attorney 
time for reviewing the demand and for legal work in connection with the 
demand; expenses generated by equipment used to search for, produce, 
and copy the requested information; travel costs of the employee and 
the agency attorney, including lodging and per diem where appropriate. 
Such fees shall be assessed at the rates and in the manner specified in 
Sec.  265.9.

[[Page 79754]]

    (ii) At the discretion of the Inspection Service where appropriate, 
fees and costs may be estimated and collected before testimony is 
given.
    (iii) The provisions in this section do not affect rights and 
procedures governing public access to official documents pursuant to 
the Freedom of Information Act, 5 U.S.C. 552a.
    (l) Acceptance of service. The rules in this section in no way 
modify the requirements of the Federal Rules of Civil Procedure (28 
U.S.C. Appendix) regarding service of process.

Appendix A to Part 265--Fees for Computer Searches

    When requested information must be retrieved by computer, fees 
charged to the requester are based on rates for personnel and 
computer time. Estimates are provided to the requester in advance 
and are based on the following rates:

------------------------------------------------------------------------
                                        Price             Unit
------------------------------------------------------------------------
Computer Personnel:
    Operator time....................      $60  Per hour.
    System or Database Administrator       100  Per hour.
     time.
    IT Specialist time...............      200  Per hour.
Computer Processing:
    Mainframe usage..................      .39  Per CPU second.
    Open system usage................     1.00  Per hour.
    PC usage.........................     7.00  Per 15 minutes.
    Printing computer output.........      .14  Per page.
    Electronic data delivery.........      100  Setup, plus $1 per
                                                 gigabyte.
------------------------------------------------------------------------

    8. Revise part 266 to read as follows:

PART 266--PRIVACY OF INFORMATION

Sec.
266.1 Purpose and scope.
266.2 Policy.
266.3 Responsibility.
266.4 Collection and disclosure of information about individuals.
266.5 Notification.
266.6 Procedures for requesting inspection, copying, or amendment of 
records.
266.7 Appeal procedure.
266.8 Schedule of fees.
266.9 Exemptions.
266.10 Computer matching.

    Authority: 39 U.S.C. 401; 5 U.S.C. 552a.


Sec.  266.1  Purpose and scope.

    This part is intended to protect individual privacy and affects all 
personal information collection and usage activities of the entire 
Postal Service. This includes the information interface of Postal 
Service employees to other employees, to individuals from the public at 
large, and to any private organization or governmental agency.


Sec.  266.2  Policy.

    It is the policy of the Postal Service to ensure that any record 
within its custody that identifies or describes any characteristic or 
provides historical information about an individual or that affords a 
basis for inferring personal characteristics, or things done by or to 
such individual, including the record of any affiliation with an 
organization or activity, or admission to an institution, is accurate, 
complete, timely, relevant, and reasonably secure from unauthorized 
access. Additionally, it is the policy to provide the means for 
individuals to know:
    (a) Of the existence of all Postal Service Privacy Act systems of 
records;
    (b) The recipients and usage made of such information;
    (c) What information is optional or mandatory to provide to the 
Postal Service;
    (d) The procedures for individuals to review and request update to 
all information maintained about themselves;
    (e) The reproduction fees for releasing records;
    (f) The procedures for individual legal appeal in cases of 
dissatisfaction; and
    (g) Of the establishment or revision of a computer matching 
program.


Sec.  266.3  Responsibility.

    (a) Records Office. The Records Office, within the Privacy Office, 
will ensure Postal Service-wide compliance with this policy.
    (b) Records Custodian. Record Custodians are responsible for 
adherence to this part within their respective units and in particular 
for affording individuals their rights to inspect and obtain copies of 
records concerning them.
    (c) Manager, Corporate Information Security Office. This manager is 
responsible for ensuring compliance with information security policies, 
including protection of information resources containing customer, 
employee, or other individuals' information; safeguarding and disposing 
of electronic records (including emails) that are maintained in 
information systems, including those that are subject to legal holds; 
and serving as the central contact for information security issues and 
providing security consultation as requested.
    (d) Data Integrity Board--(1) Responsibilities. The Data Integrity 
Board oversees Postal Service computer matching activities. Its 
principal function is to review, approve, and maintain all written 
agreements for use of Postal Service records in matching programs to 
ensure compliance with the Privacy Act and all relevant statutes, 
regulations, and guidelines. In addition, the Board annually reviews 
matching programs and other matching activities in which the Postal 
Service has participated during the preceding year to determine 
compliance with applicable laws, regulations, and agreements; compiles 
a biennial matching report of matching activities; and performs review 
and advisement functions relating to records accuracy, recordkeeping 
and disposal practices, and other computer matching activities.
    (2) Composition. The Privacy Act requires that the senior official 
responsible for implementation of agency Privacy Act policy and the 
Inspector General serve on the Board. The Chief Privacy Officer, as 
administrator of Postal Service Privacy Act policy, serves as Secretary 
of the Board and performs the administrative functions of the Board.
    The Board is composed of these and other members designated by the 
Postmaster General, as follows:
    (i) Vice President and Consumer Advocate (Chairman).
    (ii) Chief Postal Inspector.
    (iii) Inspector General.
    (iv) Chief Human Resources Officer and Executive Vice President.
    (v) Sr. Vice President, General Counsel.
    (vi) Chief Privacy Officer.


Sec.  266.4  Collection and disclosure of information about 
individuals.

    (a) The following rules govern the collection of information about 
individuals throughout Postal Service operations;
    (1) The Postal Service will:
    (i) Collect, solicit and maintain only such information about an 
individual as is relevant and necessary to accomplish a purpose 
authorized by statute or Executive Order.
    (ii) Collect information, to the greatest extent practicable, 
directly from the subject individual when such information may result 
in adverse determinations about an individual's rights, benefits or 
privileges.
    (iii) Inform any individual who has been asked to furnish 
information about himself whether that disclosure is mandatory or 
voluntary, by what authority it is being solicited, the principal 
purposes for which it is intended to be used, the routine uses which 
may be made of it, and any penalties and specific consequences for the 
individual, which are known to the Postal Service, which will result 
from refusal to furnish it.

[[Page 79755]]

    (2) The Postal Service will not discriminate against any individual 
who fails to provide information about himself unless that information 
is required or necessary for the conduct of the system or program in 
which the individual desires to participate.
    (3) No information will be collected (or maintained) describing how 
individuals exercise rights guaranteed by the First Amendment unless 
the Postmaster General specifically determines that such information is 
relevant and necessary to carry out a statutory purpose of the Postal 
Service.
    (4) The Postal Service will not require individuals to furnish 
their Social Security account number or deny a right, privilege or 
benefit because of an individual's refusal to furnish the number unless 
it must be provided by Federal law.
    (b) Disclosures--(1) Disclosure: Limitations On. The Postal Service 
will not disseminate information about an individual unless reasonable 
efforts have been made to assure that the information is accurate, 
complete, timely and relevant and unless:
    (i) The individual to whom the record pertains has requested in 
writing that the information be disseminated, or
    (ii) It has obtained the prior written consent of the individual to 
whom the record pertains, or
    (iii) The dissemination is in accordance with paragraph (b)(2) of 
this section.
    (2) Dissemination of personal information may be made:
    (i) To a person pursuant to a requirement of the Freedom of 
Information Act (5 U.S.C. 552);
    (ii) To those officers and employees of the Postal Service who have 
a need for such information in the performance of their duties;
    (iii) For a routine use as contained in the system notices 
published in the Federal Register;
    (iv) To a recipient who has provided advance adequate written 
assurance that the information will be used solely as a statistical 
reporting or research record, and to whom the information is 
transferred in a form that is not individually identifiable;
    (v) To the Bureau of the Census for purposes of planning or 
carrying out a census or survey or related activity pursuant to the 
provisions of title 13, U.S.C.;
    (vi) To the National Archives of the United States as a record 
which has sufficient historical or other value to warrant its continued 
preservation by the U.S. Government, or for evaluation by the 
Administrator of General Services or his designee to determine whether 
the record has such value;
    (vii) To a person pursuant to a showing of compelling circumstances 
affecting the health or safety of an individual, if upon such 
disclosure notification is transmitted to the last known address of 
such individual;
    (viii) To a Federal agency or to an instrumentality of any 
governmental jurisdiction within or under the control of the United 
States for a civil or criminal law enforcement activity, if such 
activity is authorized by law and if the head of the agency or 
instrumentality has made a written request to the Postal Service 
specifying the particular portion of the record desired and the law 
enforcement activity for which the record is sought;
    (ix) To either House of Congress or its committees or subcommittees 
to the extent of matter within their jurisdiction;
    (x) To the Comptroller General or any of his authorized 
representatives in the course of the performance of the duties of the 
General Accounting Office;
    (xi) Pursuant to the order of a court of competent jurisdiction.
    (3) Names and Addresses of Postal Customers. The disclosure of 
lists of names or addresses of Postal customers or other persons to the 
public is prohibited (39 U.S.C. 412). Names or addresses will be 
disclosed only in those cases permitted by 39 CFR 265.6(d) relating to 
the Release of Information.
    (4) Employee Credit References. A credit bureau or commercial firm 
from which an employee is seeking credit may be given the following 
information upon request: Grade, duty status, length of service, job 
title, and salary.
    (5) Employee Job References. Prospective employers of a postal 
employee or a former postal employee may be furnished with the 
information in paragraph (b)(4) of this section, in addition to the 
date and the reason for separation, if applicable. The reason for 
separation must be limited to one of the following terms: retired, 
resigned, or separated. Other terms or variations of these terms (e.g., 
retired, disability) may not be used. If additional information is 
desired, the requester must submit the written consent of the employee, 
and an accounting of the disclosure must be kept.
    (6) Computer matching purposes. Records from a Postal Service 
system of records may be disclosed to another agency for the purpose of 
conducting a computer matching program or other matching activity as 
defined in paragraphs (c) and (d) of Sec.  262.5, but only after a 
determination by the Data Integrity Board that the procedural 
requirements of the Privacy Act, the guidelines issued by the Office of 
Management and Budget, and these regulations as may be applicable are 
met. These requirements include:
    (i) Routine use. Disclosure is made only when permitted as a 
routine use of the system of records. The Manager, Records Office, 
determines the applicability of a particular routine use and the 
necessity for adoption of a new routine use.
    (ii) Notice. Publication of new or revised matching programs in the 
Federal Register and advance notice to Congress and the Office of 
Management and Budget must be made pursuant to paragraph (f) of Sec.  
266.5.
    (iii) Computer matching agreement. The participants in a computer 
matching program must enter into a written agreement specifying the 
terms under which the matching program is to be conducted (see Sec.  
266.10). The Manager, Records Office, may require that other matching 
activities be conducted in accordance with a written agreement.
    (iv) Data Integrity Board approval. No record from a Postal Service 
system of records may be disclosed for use in a computer matching 
program unless the matching agreement has received approval by the 
Postal Service Data Integrity Board (see Sec.  266.10). Other matching 
activities may, at the discretion of the Manager, Records Office, be 
submitted for Board approval.
    (c) Correction Disclosure. Any person or other agency to which a 
personal record has been or is to be disclosed shall be informed of any 
corrections or notations of dispute relating thereto affecting the 
accuracy, timeliness or relevance of that personal record.
    (d) Recording of Disclosure. (1) An accurate accounting of each 
disclosure will be kept in all instances except those in which 
disclosure is made to the subject of the record, or to Postal Service 
employees in the performance of their duties or is required by the 
Freedom of Information Act (5 U.S.C. 552).
    (2) The accounting will be maintained for at least five (5) years 
or the life of the record, whichever is longer.
    (3) The accounting will be made available to the individual named 
in the record upon inquiry, except for disclosures made pursuant to 
provision paragraph (b)(2)(viii) of this section relating to law 
enforcement activities.


Sec.  266.5  Notification.

    (a) Notification of Systems. Upon written request, the Postal 
Service will notify any individual whether a specific

[[Page 79756]]

system named by the individual contains a record pertaining to him or 
her. See Sec.  266.6 for suggested form of request.
    (b) Notification of Disclosure. The Postal Service shall make 
reasonable efforts to serve notice on an individual before any personal 
information on such individual is made available to any person under 
compulsory legal process when such process becomes a matter of public 
record.
    (c) Notification of Amendment. (See Sec.  266.6(c)(1) relating to 
amendment of records upon request.)
    (d) Notification of New Use. Any newly intended use of personal 
information maintained by the Postal Service will be published in the 
Federal Register thirty (30) days before such use becomes effective. 
Public views on the notice may be submitted to the Records Office.
    (e) Notification of Exemptions. The Postal Service will publish 
within the Federal Register its intent to exempt any system of records 
and shall specify the nature and purpose of that system.
    (f) Notification of computer matching program. The Postal Service 
publishes in the Federal Register and forwards to Congress and the 
Office of Management and Budget advance notice of its intent to 
establish, substantially revise, or renew a matching program, unless 
such notice is published by another participant agency. In those 
instances in which the Postal Service is the ``recipient'' agency, as 
defined in the Act, but another participant agency sponsors and derives 
the principal benefit from the matching program, the other agency is 
expected to publish the notice. The notice must be sent to Congress and 
OMB, and published at least thirty (30) days, prior to:
    (1) Initiation of any matching activity under a new or 
substantially revised program; or
    (2) Expiration of the existing matching agreement in the case of a 
renewal of a continuing program.


Sec.  266.6  Procedures for requesting inspection, copying, or 
amendment of records.

    The purpose of this section is to provide procedures by which an 
individual may have access and request amendment to personal 
information within a Privacy Act System of Records.
    (a) Submission of Requests--(1) Manner of submission. Inquiries 
regarding the contents of records systems or access or amendment to 
personal information should be submitted in writing to the custodian of 
the official record, if known, or to the Manager, Records Office, U.S. 
Postal Service, 475 L'Enfant Plaza, SW., Washington, DC 20260, 
telephone (202) 268-2608. Requests to the U.S. Postal Inspection 
Service should be submitted to the Information Disclosure Specialist, 
1735 North Lynn Street, Arlington, VA 22209. Requests submitted to the 
Office of Inspector General should be submitted to the Freedom of 
Information Act/Privacy Officer, Office of Inspector General, 1735 
North Lynn Street, Arlington, Virginia, 22209. Inquiries should be 
clearly marked, ``Privacy Act Request''. Any inquiry concerning a 
specific system of records should provide the Postal Service with the 
information contained under ``Notification'' for that system as 
published in the Federal Register. If the information supplied is 
insufficient to locate or identify the record, the requester will be 
notified promptly and, if possible, informed of additional information 
required. If the requester is not a Postal Service employee, he should 
designate the post office at which he wishes to review or obtain copies 
of records. Amendment requests contest the relevance, accuracy, 
timeliness or completeness of the record and will include a statement 
of the amendment requested.
    (2) Third party inquiries. Anyone desiring to review or copy 
records pertaining to another person must have the written consent of 
that person.
    (3) Period for response by custodian. Upon receipt of an inquiry, 
the custodian will respond with an acknowledgement of receipt within 
ten (10) days. If the inquiry requires the custodian to determine 
whether a particular record exists, the inquirer shall be informed of 
this determination as a part of the acknowledgement letter.
    (b) Compliance with Request for Access--(1) Notification of time 
and place for inspection. When a requested record has been identified 
and is to be disclosed, the custodian shall ensure that the record is 
made available promptly and shall immediately notify the requester 
where and when the record will be available for inspection or copying. 
Postal Service records will normally be available for inspection and 
copying during regular business hours at the postal facilities at which 
they are maintained. The custodian may, however, designate other 
reasonable locations and times for inspection and copying of some or 
all of the records within his custody.
    (2) Identification of requester. The requester must present 
personal identification sufficient to satisfy the custodian as to his 
identity prior to record review. Examples of sufficient identification 
are a valid driver's license, Medicare card, and employee 
identification cards.
    (3) Responsibilities of requester. The requester shall assume the 
following responsibilities regarding the review of official personal 
records:
    (i) Requester must agree not to leave Postal Services premises with 
official records unless specifically given a copy for that purpose by 
the custodian or his representative.
    (ii) Requester must sign a statement indicating he has reviewed a 
specific record(s) or category of record.
    (iii) Requester may be accompanied by a person he so chooses to aid 
in the inspection of information; however, requester must furnish the 
Postal Service with written authorization for such review in that 
person's presence.
    (4) Special rules for medical records. A medical record shall be 
disclosed to the requester to whom it pertains unless, in the judgment 
of the medical officer, access to such record could have an adverse 
effect upon such individual. When the medical officer determines that 
the disclosure of medical information could have an adverse effect upon 
the individual to whom it pertains, the medical officer will transmit 
such information to a medical doctor named by the requesting 
individual.
    (5) Limitations on access. Nothing in this section shall allow an 
individual access to any information compiled in reasonable 
anticipation of a civil action or proceeding. Other limitations on 
access are those specifically addressed in Sec. Sec.  266.6(b)(4) and 
266.9.
    (6) Response when compliance is not possible. A reply denying a 
written request to review a record shall be in writing signed by the 
custodian or other appropriate official and shall be made only if such 
a record does not exist or does not contain personal information 
relating to the requester, or is exempt from disclosure. This reply 
shall include a statement regarding the determining factors of denial, 
and the right to appeal the denial to the General Counsel.
    (c) Compliance with Request for Amendment. (1) Correct or eliminate 
any information that is found to be incomplete, inaccurate, not 
relevant to a statutory purpose of the Postal Service, or not timely 
and notify the requester when this action is complete, or
    (2) Not later than thirty (30) working days after receipt of a 
request to amend, notify the requester of a determination not to amend 
and of the requester's right to appeal, or to submit, in lieu of an 
appeal, a statement of reasonable length setting forth a position 
regarding the

[[Page 79757]]

disputed information to be attached to the contested personal record.
    (d) Availability of Assistance in Exercising Rights. The Manager, 
Records Office is available to provide an individual with assistance in 
exercising rights pursuant to this part.


Sec.  266.7  Appeal procedure.

    (a) Appeal Procedure. (1) If a request to inspect, copy, or amend a 
record is denied, in whole or in part, or if no determination is made 
within the period prescribed by this part, the requester shall appeal 
to the General Counsel, U.S. Postal Service, 475 L'Enfant Plaza, SW., 
Washington, DC 20260.
    (2) The requester should submit his appeal in writing within thirty 
(30) days of the date of denial, or within ninety (90) days of such 
request if the appeal is from a failure of the custodian to make a 
determination. The letter of appeal should include, as applicable:
    (i) Reasonable identification of the record access to which or the 
amendment of which was requested.
    (ii) A statement of the Postal Service action or failure to act and 
of the relief sought.
    (iii) A copy of the request, of the notification of denial and of 
any other related correspondence.
    (3) Any record found on appeal to be incomplete, inaccurate, not 
relevant, or not timely, shall within thirty (30) working days of the 
date of such findings be appropriately amended.
    (4) The decision of the General Counsel, constitutes the final 
decision of the Postal Service on the right of the requester to 
inspect, copy, change, or update a record. The decision on the appeal 
shall be in writing and in the event of a denial shall set forth the 
reasons for such denial and state the individual's right to obtain 
judicial review in a district court. An indexed file of decisions on 
appeals shall be maintained by the General Counsel.
    (b) Submission of Statement of Disagreement. If the final decision 
concerning a request for the amendment of a record does not satisfy the 
requester, any statement of reasonable length provided by that 
individual setting forth a position regarding the disputed information 
will be accepted and attached to the relevant personal record.


Sec.  266.8  Schedule of fees.

    (a) Policy. The purpose of this section is to establish fair and 
equitable fees to permit duplication of records for subject individuals 
(or authorized representatives) while recovering the full allowable 
direct costs incurred by the Postal Service.
    (b) Duplication. (1) For duplicating any paper or micrographic 
record or publication or computer report, the fee is $.15 per page, 
except that the first 100 pages furnished in response to a particular 
request shall be furnished without charge. See paragraph (d) of this 
section for fee limitations.
    (2) The Postal Service may at its discretion make coin-operated 
copy machines available at any location. In that event, requesters will 
be given the opportunity to make copies at their own expense.
    (3) The Postal Service normally will not furnish more than one copy 
of any record. If duplicate copies are furnished at the request of the 
requester, $.15 per page fee is charged for each copy of each duplicate 
page without regard to whether the requester is eligible for free 
copies pursuant to Sec.  266.8(b)(1).
    (c) Aggregating requests. When the custodian reasonably believes 
that a requester is attempting to break a request for similar types of 
records down into a series of requests in order to evade the assessment 
of fees, the custodian may aggregate the requests and charge 
accordingly.
    (d) Limitations. No fee will be charged an individual for the 
process of retrieving, reviewing, or amending a record pertaining to 
that individual.
    (e) Reimbursements. The Postal Service may, at its discretion, 
require reimbursement of its costs as a condition of participation in a 
computer matching program or activity with another agency. The agency 
to be charged is notified in writing of the approximate costs before 
they are incurred. Costs are calculated in accordance with the schedule 
of fees at Sec.  265.9.


Sec.  266.9  Exemptions.

    (a) Subsections 552a(j) and (k) of 5 U.S.C. 552a authorize the 
Postmaster General to exempt systems of records meeting certain 
criteria from various other subsections of 5 U.S.C. 552a. With respect 
to systems of records so exempted, nothing in this part shall require 
compliance with provisions hereof implementing any subsections of 5 
U.S.C. 552a from which those systems have been exempted.
    (b) Paragraph (b)(1) of this section contains a summary of 
provisions of 5 U.S.C. 552a for which exemption is claimed for some 
systems of records pursuant to, and to the extent permitted by, 
subsections 552a(j) and (k) of 5 U.S.C. 552a. Paragraphs (b)(2) through 
(5) of this section identify the exempted systems of records, the 
exemptions applied to each, and the reasons for the exemptions:
    (1) Explanation of provisions under 5 U.S.C. 552a for which an 
exemption is claimed. The following paragraphs (b)(1)(i) through (xii) 
pertain to an exemption claimed.
    (i) Subsection (c)(3) requires an agency to make available to the 
individual named in the records an accounting of each disclosure of 
records.
    (ii) Subsection (c)(4) requires an agency to inform any person or 
other agency to which a record has been disclosed of any correction or 
notation of dispute the agency has made to the record in accordance 
with 5 U.S.C. 552a(d).
    (iii) Subsections (d)(1) through (4) require an agency to permit an 
individual to gain access to records about the individual, to request 
amendment of such records, to request a review of an agency decision 
not to amend such records, and to provide a statement of disagreement 
about a disputed record to be filed and disclosed with the disputed 
record.
    (iv) Subsection (e)(1) requires an agency to maintain in its 
records only such information about an individual that is relevant and 
necessary to accomplish a purpose required by statute or executive 
order of the President.
    (v) Subsection (e)(2) requires an agency to collect information to 
the greatest extent practicable directly from the subject individual 
when the information may result in adverse determinations about an 
individual's rights, benefits, and privileges under Federal programs.
    (vi) Subsection (e)(3) requires an agency to inform each person 
whom it asks to supply information of the authority under which the 
information is sought, the purposes for which the information will be 
used, the routine uses that may be made of the information, whether 
disclosure is mandatory or voluntary, and the effects of not providing 
the information.
    (vii) Subsection (e)(4)(G) and (H) requires an agency to publish a 
Federal Register notice of its procedures whereby an individual can be 
notified upon request whether the system of records contains 
information about the individual, how to gain access to any record 
about the individual contained in the system, and how to contest its 
content.
    (viii) Subsection (e)(5) requires an agency to maintain its records 
with such accuracy, relevance, timeliness, and completeness as is 
reasonably necessary to ensure fairness to the individual in making any 
determination about the individual.

[[Page 79758]]

    (ix) Subsection (e)(8) requires an agency to make reasonable 
efforts to serve notice on an individual when any record on such 
individual is made available to any person under compulsory legal 
process when such process becomes a matter of public record.
    (x) Subsection (f) requires an agency to establish procedures 
whereby an individual can be notified upon request if any system of 
records named by the individual contains a record pertaining to the 
individual, obtain access to the record, and request amendment.
    (xi) Subsection (g) provides for civil remedies if an agency fails 
to comply with the access and amendment provisions of subsections 
(d)(1) and (d)(3), and with other provisions of 5 U.S.C. 552a, or any 
rule promulgated there under, in such a way as to have an adverse 
effect on an individual.
    (xii) Subsection (m) requires an agency to cause the requirements 
of 5 U.S.C. 552a to be applied to a contractor operating a system of 
records to accomplish an agency function.
    (2) Pursuant to subsection 552a(j)(2), Emergency Management 
Records, USPS 500.300; Inspection Service Investigative File System, 
USPS 700.000; Mail Cover Program Records, USPS 700.100; and Inspector 
General Investigative Records, USPS 700.300, are exempt from 
subsections 552a (c)(3), (c)(4), (d)(1) through (4), (e)(1) through 
(3), (e)(4) (G) and (H), (e)(5), (e)(8), (f), (g), and (m) because the 
systems contain information pertaining to the enforcement of criminal 
laws. The reasons for exemption follow:
    (i) Disclosure to the record subject pursuant to subsections 
(c)(3), (c)(4), or (d)(1) through (4) could:
    (A) Alert subjects that they are targets of an investigation or 
mail cover by the Postal Inspection Service or an investigation by the 
Office of Inspector General;
    (B) Alert subjects of the nature and scope of the investigation and 
of evidence obtained;
    (C) Enable the subject of an investigation to avoid detection or 
apprehension;
    (D) Subject confidential sources, witnesses, and law enforcement 
personnel to harassment or intimidation if their identities were 
released to the target of an investigation;
    (E) Constitute unwarranted invasions of the personal privacy of 
third parties who are involved in a certain investigation;
    (F) Intimidate potential witnesses and cause them to be reluctant 
to offer information;
    (G) Lead to the improper influencing of witnesses, the destruction 
or alteration of evidence yet to be discovered, the fabrication of 
testimony, or the compromising of classified material; and
    (H) Seriously impede or compromise law enforcement, mail cover, or 
background investigations that might involve law enforcement aspects as 
a result of the above.
    (ii) Application of subsections (e)(1) and (e)(5) is impractical 
because the relevance, necessity, or correctness of specific 
information might be established only after considerable analysis and 
as the investigation progresses. As to relevance (subsection (e)(1)), 
effective law enforcement requires the keeping of information not 
relevant to a specific Postal Inspection Service investigation or 
Office of Inspector General investigation. Such information may be kept 
to provide leads for appropriate law enforcement and to establish 
patterns of activity that might relate to the jurisdiction of the 
Office of Inspector General, Postal Inspection Service, and/or other 
agencies. As to accuracy (subsection (e)(5)), the correctness of 
records sometimes can be established only in a court of law.
    (iii) Application of subsections (e)(2) and (e)(3) would require 
collection of information directly from the subject of a potential or 
ongoing investigation. The subject would be put on alert that he or she 
is a target of an investigation by the Office of Inspector General, or 
an investigation or mail cover by the Postal Inspection Service, 
enabling avoidance of detection or apprehension, thereby seriously 
compromising law enforcement, mail cover, or background investigations 
involving law enforcement aspects. Moreover, in certain circumstances 
the subject of an investigation is not required to provide information 
to investigators, and information must be collected from other sources.
    (iv) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply because this system is exempt from the provisions of 
subsection (d). Nevertheless, the Postal Service has published notice 
of its notification, access, and contest procedures because access is 
appropriate in some cases.
    (v) Application of subsection (e)(8) could prematurely reveal an 
ongoing criminal investigation to the subject of the investigation.
    (vi) The provisions of subsection (g) do not apply because 
exemption from the provisions of subsection (d) renders the provisions 
on suits to enforce subsection (d) inapplicable.
    (vii) If one of these systems of records is operated in whole or in 
part by a contractor, the exemptions claimed herein shall remain 
applicable to it (subsection (m)).
    (3) Pursuant to subsection 552a(k)(2), Labor Relations Records, 
USPS 200.000; Emergency Management Records, USPS 500.300; Inspection 
Service Investigative File System, USPS 700.000; Mail Cover Program 
Records, USPS 700.100; Inspector General Investigative Records, USPS 
700.300; and Financial Transactions, USPS 860.000, are exempt from 
certain subsections of 5 U.S.C. 552a because the systems contain 
investigatory material compiled for law enforcement purposes other than 
material within the scope of subsection 552a(j)(2).
    (i) Emergency Management Records, USPS 500.300; Inspection Service 
Investigative File System, USPS 700.000; Mail Cover Program Records, 
USPS 700.100; and Inspector General Investigative Records, USPS 
700.300, are exempt from subsections 552a(c)(3), (d)(1)-(4), (e)(1), 
(e)(4)(G) and (H), and (f) for the same reasons as stated in paragraph 
(b)(2) of this section.
    (ii) Labor Relations Records, USPS 200.000, is exempt from 
subsections 552a(d)(1) through (4), (e)(4)(G) and (H), and (f) for the 
following reasons:
    (A) Application of the requirements at subsections (d)(1) through 
(4) would cause disruption of enforcement of the laws relating to equal 
employment opportunity (EEO). It is essential to the integrity of the 
EEO complaint system that information collected in the investigative 
process not be prematurely disclosed and that witnesses be free from 
restraint, interference, coercion, or reprisal.
    (B) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply for the same reasons described in paragraph (b)(2)(iv) of 
this section.
    (iii) Financial Transactions, USPS 860.000, is exempt from 
subsections 552a(c)(3), (d)(1) through (4), (e)(1), (e)(4)(G) and (H), 
and (f) for the following reasons:
    (A) Disclosure to the record subject pursuant to subsections (c)(3) 
and (d)(1) through (4) would violate the non-notification provision of 
the Bank Secrecy Act, 31 U.S.C. 5318(g)(2), under which the Postal 
Service is prohibited from notifying a transaction participant that a 
suspicious transaction report has been made. In addition, the access 
provisions of subsections (c)(3) and (d)(1) through (4) would alert 
individuals that they have been identified as suspects or possible 
subjects of investigation and thus seriously hinder the law enforcement

[[Page 79759]]

purposes underlying the suspicious transaction reports.
    (B) This system is in compliance with subsection (e)(1) because 
maintenance of the records is required by law. Strict application of 
the relevance and necessity requirements of subsection (e)(1) to 
suspicious transactions would be impractical, however, because the 
relevance or necessity of specific information can often be established 
only after considerable analysis and as an investigation progresses.
    (C) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply because this system is exempt from the provisions of 
subsection (d). Nevertheless, the Postal Service has published notice 
of its notification, access, and contest procedures because access is 
appropriate in some cases.
    (4) Pursuant to subsection 552a(k)(5), Recruiting, Examining, and 
Placement Records, USPS 100.100; Labor Relations Records, USPS 200.000; 
Inspection Service Investigative File System, USPS 700.000; and 
Inspector General Investigative Records, USPS 700.300 are exempt from 
certain subsections of 5 U.S.C. 552a because the systems contain 
investigatory material compiled for the purpose of determining 
suitability, eligibility, or qualifications for employment, contracts, 
or access to classified information.
    (i) Recruiting, Examining, and Placement Records, USPS 100.100, is 
exempt from subsections 552a(d)(1) through (4) and (e)(1) for the 
following reasons:
    (A) During its investigation and evaluation of an applicant for a 
position, the Postal Service contacts individuals who, without an 
assurance of anonymity, would refuse to provide information concerning 
the subject of the investigation. If a record subject were given access 
pursuant to subsection (d)(1) through (4), the promised confidentiality 
would be breached and the confidential source would be identified. The 
result would be restriction of the free flow of information vital to a 
determination of an individual's qualifications and suitability for 
appointment to or continued occupancy of his or her position.
    (B) In collecting information for investigative and evaluative 
purposes, it is impossible to determine in advance what information 
might be of assistance in determining the qualifications and 
suitability of an individual for appointment. Information that seems 
irrelevant, when linked with other information, can sometimes provide a 
composite picture of an individual that assists in determining whether 
that individual should be appointed to or retained in a position. For 
this reason, exemption from subsection (e)(1) is claimed.
    (C) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply because this system is exempt from the provisions of 
subsection (d). Nevertheless, the Postal Service has published notice 
of its notification, access, and contest procedures because access is 
appropriate in some cases.
    (ii) Labor Relations Records, USPS 200.000, is exempt from 
subsections 552a(d)(1) through (4), (e)(4)(G) and (H), and (f) for the 
following reasons:
    (A) Application of the provisions at subsection (d)(1) through (4) 
would reveal to the EEO complainant the identity of individuals who 
supplied information under a promise of anonymity. It is essential to 
the integrity of the EEO complaint system that information collected in 
the investigative process not be prematurely disclosed and that 
witnesses be free from restraint, interference, coercion, or reprisal.
    (B) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply because this system is exempt from the provisions of 
subsection (d). Nevertheless, the Postal Service has published notice 
of its notification, access, and contest procedures because access is 
appropriate in some cases.
    (iii) Inspection Service Investigative File System, USPS 700.000; 
and Inspector General Investigative Records, USPS 700.300, are exempt 
from subsections 552a(c)(3), (d)(1) through (4), (e)(1), (e)(4) (G) and 
(H), and (f) for the same reasons as stated in paragraph (b)(2) of this 
section.
    (5) Pursuant to subsection 552a(k)(6), Employee Development and 
Training Records, USPS 100.300; Personnel Research Records, 100.600; 
and Emergency Management Records, USPS 500.300 are exempt from 
subsections 552a(d)(1) through (4), (e)(4)(G) and (H), and (f) because 
the systems contain testing or examination material the disclosure of 
which would compromise the objectivity or fairness of the material. The 
reasons for exemption follow:
    (i) These systems contain questions and answers to standard testing 
materials, the disclosure of which would compromise the fairness of the 
future use of these materials. It is not feasible to develop entirely 
new examinations after each administration as would be necessary if 
questions or answers were available for inspection and copying. 
Consequently, exemption from subsection (d) is claimed.
    (ii) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply because this system is exempt from the provisions of 
subsection (d). Nevertheless, the Postal Service has published notice 
of its notification, access, and contest procedures because access is 
appropriate in some cases.


Sec.  266.10  Computer matching.

    (a) General. Any agency or Postal Service component that wishes to 
use records from a Postal Service automated system of records in a 
computerized comparison with other postal or non-postal records must 
submit its proposal to the Postal Service, Manager, Records Office. 
Computer matching programs as defined in paragraph (c) of Sec.  265 
must be conducted in accordance with the Privacy Act, as amended by the 
Computer Matching and Privacy Protection Act of 1988. Records may not 
be exchanged for a matching program until all procedural requirements 
of the Act and these regulations have been met. Other matching 
activities must be conducted in accordance with the Privacy Act and 
with the approval of the Manager, Records Office. See paragraph (b)(6) 
of Sec.  266.4.
    (b) Procedure for submission of matching proposals. A proposal must 
include information required for the matching agreement discussed in 
paragraph (d)(1) of this section. The Inspection Service must submit 
its proposals for matching programs and other matching activities to 
the Postal Service Manager Records Office through: Counsel, Inspection 
Service, U.S. Postal Service, 475 L'Enfant Plaza, SW., Washington, DC 
20260. All other matching proposals, whether from postal organizations 
or other government agencies, must be mailed directly to: Manager, 
Records Office, U.S. Postal Service, 475 L'Enfant Plaza, SW., 
Washington, DC 20260.
    (c) Lead time. Proposals must be submitted to the Postal Service 
Manager Records Office at least 3 months in advance of the anticipated 
starting date to allow time to meet Privacy Act publication and review 
requirements.
    (d) Matching agreements. The participants in a computer matching 
program must enter into a written agreement specifying the terms under 
which the matching program is to be conducted. The Manager, Records 
Office may require similar written agreements for other matching 
activities.
    (1) Content. Agreements must specify:
    (i) The purpose and legal authority for conducting the matching 
program;
    (ii) The justification for the program and the anticipated results, 
including, when appropriate, a specific estimate of

[[Page 79760]]

any savings in terms of expected costs and benefits, in sufficient 
detail for the Data Integrity Board to make an informed decision;
    (iii) A description of the records that are to be matched, 
including the data elements to be used, the number of records, and the 
approximate dates of the matching program;
    (iv) Procedures for providing notice to individuals who supply 
information that the information may be subject to verification through 
computer matching programs;
    (v) Procedures for verifying information produced in a matching 
program and for providing individuals an opportunity to contest the 
findings in accordance with the requirement that an agency may not take 
adverse action against an individual as a result of information 
produced by a matching program until the agency has independently 
verified the information and provided the individual with due process;
    (vi) Procedures for ensuring the administrative, technical, and 
physical security of the records matched; for the retention and timely 
destruction of records created by the matching program; and for the use 
and return or destruction of records used in the program;
    (vii) Prohibitions concerning duplication and redisclosure of 
records exchanged, except where required by law or essential to the 
conduct of the matching program;
    (viii) Assessments of the accuracy of the records to be used in the 
matching program; and
    (ix) A statement that the Comptroller General may have access to 
all records of the participant agencies in order to monitor compliance 
with the agreement.
    (2) Approval. Before the Postal Service may participate in a 
computer matching program or other computer matching activity that 
involves both USPS and non-USPS records, the Data Integrity Board must 
have evaluated the proposed match and unanimously approved the terms of 
the matching agreement. Agreements are executed by the Chairman of the 
Board. If a matching agreement is disapproved by the Board, any party 
may appeal the disapproval in writing to the Director, Office of 
Management and Budget, Washington, DC 20503, within 30 days following 
the Board's written disapproval.
    (3) Effective dates. The agreement will become effective in 
accordance with the date in the matching agreement and as provided to 
Congress and OMB and published in the Federal Register. The agreement 
remains in effect only as long as necessary to accomplish the specific 
matching purpose, but no longer than 18 months, at which time the 
agreement expires unless extended. The Data Integrity Board may extend 
an agreement for one additional year, without further review, if within 
3 months prior to expiration of the 18-month period it finds that the 
matching program is to be conducted without change, and each party to 
the agreement certifies that the program has been conducted in 
compliance with the matching agreement. Renewal of a continuing 
matching program that has run for the full 30-month period requires a 
new agreement that has received Data Integrity Board approval.

Neva R. Watson,
Attorney, Legislative.
[FR Doc. E8-28386 Filed 12-29-08; 8:45 am]
BILLING CODE 7710-12-P